Annual Report - BNP Paribas

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Annual Report - BNP Paribas

The bank for a changing world

Annual Report

07


BNP Paribas has a longstanding relationship

with the Opéra district of Paris. The Group’s

headquarters and top management offi ces

are located in this elegant part of the French

capital, which is also the home base of

10,000 employees. BNP Paribas buildings are

emblematic of France’s prestigious architectural

heritage from the 18th to the 20th centuries.

Front cover photo: Paris (France), Opéra area.

© Yann Arthus-Bertrand / Altitude


CONTENTS

Key figures 2-3

Chairman's and Chief Executive Officer's statement 4-5

Executive Committee 6-7

Corporate governance 8-10

Remuneration 11

Shareholder information 12-21

Innovation 22-23

Corporate & Investment Banking 24-39

Advisory and Capital Markets 29-34

Equities and Derivatives 29-30

Fixed Income 31-32

Corporate Finance 33-34

Financing businesses 35-39

Specialised Finance 35-37

Structured Finance 38-39

French Retail Banking 40-51

Individual clients 43-45

Entrepreneurs and freelance professionals 46-47

Corporate and institutional clients 48-50

After-sales organisation 51

International Retail Services 52-65

Personal Finance 55-56

Equipment Solutions 57-58

BancWest 59-60

Emerging Markets 61-65

BNL banca commerciale 66-73

Asset Management & Services 74-89

BNP Paribas Private Banking 77-78

BNP Paribas Investment Partners 79-81

BNP Paribas Personal Investors 82-83

BNP Paribas Real Estate 84-85

BNP Paribas Assurance 86-87

BNP Paribas Securities Services 88-89

Klépierre 90-91

BNP Paribas Principal Investments 91

BNP Paribas Group's core values 92-93

Human Resources development 94-103

Corporate social responsibility 104-117

The Group's approach to sustainable development 106-109

A partner in society 110-117

Glossary 118-124


Key fi gures

Results

(in millions of euros)

31 December 2006 31 December 2007

Total assets 1,440,343 1,694,454

Customer deposits 393,133 445,103

Customer loans (gross) 298,652 346,704

Shareholder’s equity (1) 49,512 53,799

International capital adequacy ratio 10.5% 10%

o/w Tier One 7.4% 7.3%

(1) Before income appropriation.

Number of Group employees

(Full-time equivalents)

Net banking

income

(in millions of euros)

2006 2007

World 141,911 162,700

Europe (including overseas department and territories) 110,584 126,000

Long-term ratings

Standard & Poor’s AA+ Stable outlook upgraded on 10 July 2007

Moody’s Aa1 Stable outlook upgraded on 23 May 2007

Fitch AA Stable outlook reaffirmed on 16 May 2007

17,935

18,823

21,854

27,943

31,037

2003*

2004*

2005**

2006**

2007**

Gross income

(in millions of euros)

8,485

7,231

6,650

10,878

12,273

2003*

2004*

2005**

2006**

2007**

Net attributable

income

(in millions of euros)

5,852

4,668

3,761

7,308

7,822

2003*

2004*

2005**

2006**

2007**

Earnings

per share

(in euros) (***)

5.51

4.28

8.03

6.96

2003*

2004*

2005**

2006**

2007**

8.49


The BNP Paribas Group

BNP Paribas is a European leader in banking and fi nancial

services, with a signifi cant and growing presence in the United

States and leading positions in Asia. The Group has one of

the largest international banking networks, a presence in over

85 countries, with almost 163,000 employees, including over

126,000 in Europe. BNP Paribas enjoys key positions in its three

core businesses:

Corporate & Investment Banking (CIB)

Retail Banking, comprising three divisions:

French Retail Banking (FRB)

Italian Retail Banking: BNL banca commerciale (BNL bc)

International Retail Services (IRS)

Asset Management & Services (AMS)

Return on equity

(in%) (****)

16.8

14.3

21.2

20.2

2003*

2004*

2005**

2006**

2007**

19.6

Market capitalisation

(in billions of euros)

Source: Bloomberg

47.2

45.1

57.3

76.9

67.2

2003

2004

2005

2006

2007

(*) Under French GAAP.

(**) Under International Financial Reporting Standards (IFRS) as adopted by the European Union.

(***) Adjusted for the impact of the 2006 rights issue on years 2003 to 2005.

(****) Return on equity is calculated by dividing net attributable income (adjusted for interest

on undated super subordinated notes deemed equivalent to preferred shares issued by

BNP Paribas SA and treated as a dividend for accounting purposes) by average equity

attributable to equity holders of the parent at 1 January and 31 December of the period

concerned (after distribution and excluding undated super subordinated notes deemed

equivalent to preferred shares issued by BNP Paribas SA).

2_3


Chairman’s

and Chief Executive

Offi cer’s statement

Despite a steep decline in the economic climate over the second half of the year,

BNP Paribas delivered record results in 2007. Net banking income surged 11.1%

year-on-year to EUR 31,037 million, while net income climbed 7% over the same

year-ago period, to EUR 7,822 million. 2007 was a year of stark contrasts for the

fi nancial world: bullish economic sentiment in the fi rst six months of the year gave

way to deepening concerns about the implications of the US subprime crisis.

The fall-out from the crisis continues to shake the markets and has sparked

major difficulties in many banking firms, particularly in the United States.

Share price volatility has affected all fi nancial institutions and turned the ranking

of the world’s fi fteen largest caps on its head. Our Group has been one of the

least affected by the troubles rippling across the globe. When Standard & Poor’s

raised BNP Paribas’ credit rating to AA+ in July 2007, our Group joined one of

only a handful of banks worldwide considered as a beacon of fi nancial strength.

BNP Paribas is also one of the world’s most valuable brands.

BNP Paribas’ record results were powered by vigorous organic growth,

with the subprime crisis having only a limited impact on earnings and provisions.

Our business model proved its strength, and all core businesses posted

fresh advances in revenues compared to an already strong showing in 2006.

Retail Banking represents over half of the Group’s revenues, and is the backbone

of our activities, boasting more than 5,600 branches, 17 million network customers

and over 20 million direct customers from specialised fi nancing businesses.

Our Corporate and Investment Banking arm delivered record results in the fi rst half

of the year and proved extremely resilient over the second. The Asset Management

and Services Division was yet again one of the key drivers of the Group’s growth

momentum, and demonstrated a renewed capacity to beat analysts’ expectations

and outperform the market.

The Group also continued to expand its footprint in 2007, delivering both

organic growth (180 new branches opened in emerging countries, launch

of Cetelem and retail activities in Russia) and mounting a series of mid-size

acquisitions. These included the brokerage fi rm Geojit in India, where UCB,

Arval and BNP Paribas Lease Group began operations in the year; consumer

finance specialists Banco BGN in Brazil and Jet Finance International in

Bulgaria; Sahara Bank in Libya; and three Securities fi rms in Spain, Italy and

the offshore markets of Jersey, Guernsey and the Isle of Man. Over the year,

BNP Paribas brought in 20,000 new recruits, and now has 162,700 employees

across the globe.

BNP Paribas

at a glance

Record results in 2007

Net banking income

EUR 31,037 million

(up 11.1%/2006)

Net income Group share

EUR 7,822 million

(up 7.0%/2006)

A powerful organic

growth

Operating expenses

EUR -18,764 million

(up 10.0%/2006)


Michel Pébereau, Chairman Baudouin Prot, Chief Executive Offi cer

Unsettled and volatile markets will continue to put banks to the test in 2008.

This persistent, far-reaching crisis will have long-lasting implications for the

fi nancial services industry, and no banking revenues or loan loss provisions will

be left untouched. Banks will fi nd themselves having to adjust costs and capital

accordingly, while markets will have to contend with increased demand for

transparency, liquidity and oversight. Our aim for the coming year will therefore be

two-fold: to successfully manage our business in the face of the current market

imbalances, and to make swift adjustments to our business models in response

to the changing shape of the economy.

A number of priorities have been set for our three core businesses. In Retail Banking,

we have already launched a project to converge IT platforms. On our two domestic

markets of France and Italy, we will endeavour to improve operating effi ciency

and enhance our competitive edge. In International Retail Services, our aim is to

unlock fresh growth gains and step up operating effi ciency, with a sharper focus

on risk management. In the United States, where we face a diffi cult short-term

environment but can capitalise on strong growth potential, we will continue to

upgrade our network and develop our commercial offering.

We will adopt a disciplined approach across our Corporate and Investment

Banking arm (BNP Paribas CIB) in 2008, a year which will also see the

development of a host of innovative products meeting heightened customer

demands for transparency and liquidity. Asset Management and Services (AMS)

should continue to be a key driver of the Group’s growth momentum.

2008 should also see the launch of BNP Paribas’ Microfi nance project, which lies

at the top of its social responsibility agenda. The Group has signed an agreement

with the French Development Agency to promote microfi nance and sustainable

development initiatives. In connection with this agreement, a loan granted to

one of India’s largest institutions helped provide 20,000 borrowers with access

to microcredit. In the United States, we were awarded the Social Responsibility

prize for the efforts of employees from our New York offi ce in helping to rebuild

the devastated city of New Orleans.

Our performance in 2007 was one of the best among comparable banks,

and our unmatched strengths will enable us to weather challenging conditions

in 2008. We have full confi dence in our business going forward and are fi rmly

committed to leveraging the opportunities that the future will surely hold.

Strong business

development drive:

revenues grew in all

the core businesses

FRB (1) :

EUR 5,919 million

(+4.4%)

BNL bc (2) :

EUR 2,634 million

(+6.5%)

IRS:

EUR 7,955 million

(+7.9%)

AMS:

EUR 5,329 million

(+20.9%)

CIB:

EUR 8,293 million

(+2.5%)

A solid financial

structure

Earning per share:

EUR 3.35

(+8.1%) (3)

(1) Excluding PEL/CEL effects, with

100% of French Private Banking.

(2) 100% of Italian Private Banking -

2006 full year pro forma.

(3) Subject to approval by AGM.

4_5


Executive Committee

Philippe Bordenave Jean-Laurent Bonnafé Alain Papiasse Frédéric Lavenir Jacques d’Estais

Head of Group Finance

and Development

Head of French Retail

Banking and BNL banca

commerciale

Fabio Gallia

44, joined BNP Paribas on 1 October 2007,

and succeeded Mario Girotti as Chief Executive

Offi cer of BNL with effect from 1 January 2008.

He was previously Assistant General Manager

of Banca di Roma. He will be appointed to

the Executive Committee of BNP Paribas during 2008.

Head of Asset

Management

and Services

Head of Group Human

Resources

Head of Corporate

and Investment Banking

Michel Konczaty

Head of Group Risk Management, attends Executive

Committee meetings on all matters within his sphere

of competence.


Georges Chodron de Courcel Baudouin Prot Jean Clamon Pierre Mariani Alain Marbach Vivien Lévy-Garboua

Chief Operating Offi cer Chief Executive

Offi cer

Chief Operating

Offi cer

Head of International

Retail Services

Head of Technology

and Processes

Head of Compliance

and Internal Control

Coordinator

6_7


Corporate governance

Michel

PÉBEREAU

Principal function (1) :

Chairman of the BNP Paribas

Board of Directors

Born on 23 January 1942

Elected on:

23 May 2006 – Term expires

at the 2009 AGM

First elected to the Board on:

14 May 1993

Number of BNP Paribas

shares held (2) : 123,120

Offi ce address:

3, rue d’Antin – 75002 Paris,

France

Functions at 31 December 2007 (1)

Director of:

Lafarge, Compagnie

de Saint-Gobain, Total,

Eads NV (Netherlands),

Pargesa Holding SA

(Switzerland)

Member of the Supervisory

Board of:

AXA, Banque Marocaine pour

le Commerce et l’Industrie

(Morocco)

Non-voting director of:

Société Anonyme

des Galeries Lafayette

Chairman of:

European Banking Federation,

Investment Banking

and Financial Markets

Committee of Fédération

Bancaire Française,

Management Board

of Institut d’Études Politiques

de Paris, Supervisory Board

of Institut Aspen France,

Institut de l’Entreprise

Member of:

Académie des sciences morales

et politiques, the Executive

Committee of Mouvement

des Entreprises de France,

Haut Conseil de l’Éducation,

European Financial Round

Table, Institut International

d’Études Bancaires,

International Advisory Panel

of the Monetary Authority

of Singapore, International

Capital Markets Advisory

Committee of the Federal

Reserve Bank of New York,

International Business Leaders’

Advisory Council for the Mayor

of Shanghai (IBLAC)

Patrick

AUGUSTE

Principal function (1) :

Real estate project manager

Born on 18 June 1951

Elected on: Director elected

to a three-year term by

BNP Paribas executive

employees on 7 March 2006

First elected to the Board on:

14 December 1993

Number of BNP Paribas

shares held (2) : 33

Offi ce address:

20, avenue Georges-Pompidou

92300 Levallois-Perret, France

Functions at 31 December 2007 (1)

None

Claude

BÉBÉAR

Principal function (1) :

Chairman of the Supervisory

Board of AXA

Born on 29 July 1935

Elected on: 23 May 2006 –

AG 2009

First elected to the Board on:

23 May 2000

Number of BNP Paribas

shares held (2) : 3,074

Offi ce address:

25, avenue Matignon,

75008 Paris, France

Functions at 31 December 2007 (1)

Director of:

AXA Assurances IARD Mutuelle,

AXA Assurances Vie Mutuelle

Member of the Supervisory

Board of:

Vivendi

Non-voting director of:

Schneider Electric

Chairman of:

IMS-Entreprendre pour la Cité,

Institut Montaigne

Member of:

International Advisory Panel

of the Monetary Authority

of Singapore, International

Advisory Board of Tsinghua's

School of Economics

and Management,

Beijing (China)

Jean-Louis

BEFFA

Principal function (1) :

Chairman of the Board

of Directors of Compagnie

de Saint-Gobain

Born on 11 August 1941

Elected on: 23 May 2006 –

AG 2009

First elected to the Board on:

22 October 1986

Number of BNP Paribas

shares held (2) :13,986

Offi ce address:

“Les Miroirs”

18, avenue d’Alsace

92096 La Défense Cedex,

France

Functions at 31 December 2007 (1)

Vice-Chairman of:

The Board of Directors

of BNP Paribas

Chairman of:

Claude Bernard Participations

Director of:

Gaz de France, Groupe

Bruxelles Lambert (Belgium),

Saint-Gobain Cristaleria SA

(Spain), Saint-Gobain

Corporation (USA)

Member of the Supervisory

Board of:

Le Monde SA, Le Monde

& Partenaire Associés (SAS),

Société Éditrice du Monde

Suzanne

BERGER

Principal function (1) :

Professor of Political Science

at the Massachusetts Institute

of Technology, Cambridge,

Massachusetts (USA) –

Director of the MIT International

Science and Technology

Initiative (MISTI)

Born on 11 March 1939

Elected on: 8 March 2007 –

Term expires at the 2008 AGM

First elected to the Board on:

8 March 2007

Number of BNP Paribas

shares held (2) : 250

Offi ce address:

30, Wadsworth Street,

E53-451 Cambridge

MA 02139-4307

USA

Functions at 31 December 2007 (1)

Member of:

American Academy

of Arts and Sciences

Research associate and member

of Executive Committee of:

Center for European Studies

at Harvard University

Gerhard

CROMME

Principal function (1) :

Chairman of the Supervisory

Board of ThyssenKrupp AG

Born on 25 February 1943

Elected on: 18 May 2005 –

30 June 2007

First elected to the Board on:

21 March 2003

Number of BNP Paribas

shares held (2) : 400

Offi ce address: August-

Thyssen-Strasse 1

Postfach 10 10 10

40001 Düsseldorf

Germany

Functions at 31 December 2007 (1)

Chairman of the Supervisory

Board of:

Siemens AG (Germany)


Member of the Supervisory

Board of:

Allianz SE (Germany),

Axel Springer AG (Germany)

Director of:

Compagnie de Saint-Gobain

Chairman of:

German Governmental

Commission on Corporate

Governance

Member of:

European Round Table

of Industrialists (ERT)

Gerhard Cromme

resigned from his offi ce,

effective 1 July 2007

Jean-Marie

GIANNO

Principal function (1) :

Sales associate

Born on 7 September 1952

Elected on: Director to a threeyear

term by BNP Paribas

employees on 7 March 2006

First elected to the Board on:

15 March 2004

(Jean-Marie Gianno was

an employee representative

on the Board of Banque

Nationale de Paris from 1993

to 1999)

Number of BNP Paribas

shares held (2) : 10

Offi ce address:

21, avenue Jean-Médecin

06000 Nice

France

Functions at 31 December 2007 (1)

Member of:

Comité des Établissements

de Crédit et des Entreprises

d’Investissement (CECEI),

“Confrontation” (a European

think tank)

François

GRAPPOTTE

Principal function (1) :

Honorary Chairman of Legrand,

Director of companies

Born on 21 April 1936

Elected on: 18 May 2005 –

AG 2008

First elected to the Board on:

4 May 1999

Number of BNP Paribas

shares held (2) : 2,537

Offi ce address: 128, avenue

de-Lattre-de-Tassigny

87045 Limoges

France

Functions at 31 December 2007 (1)

Director of:

Legrand, Legrand France

Member of the Supervisory

Board of:

Michelin

Member of:

Advisory Committee

of Banque de France

Alain

JOLY

Principal function (1) :

Director of Air Liquide

Born on 18 April 1938

Elected on: 23 May 2006 –

AG 2009

First elected to the Board on:

28 June 1995

Number of BNP Paribas

shares held (2) : 5,227

Offi ce address:

75, quai d’Orsay

75007 Paris

France

Functions at 31 December 2007 (1)

Director of:

Lafarge

Denis

KESSLER

Principal function (1) :

Chairman and Chief Executive

Offi cer of Scor SE

Born on 25 March 1952

Elected on:

23 May 2006 – AG 2009

First elected to the Board on:

23 May 2000

Number of BNP Paribas

shares held (2) : 2,000

Offi ce address:

1, avenue du Général-de-Gaulle

92074 Paris-La Défense Cedex

France

Functions at 31 December 2007 (1)

Chairman of:

Scor Global Life SE, Scor Global

P &C SE, Scor Global Life US

Re Insurance Company (USA),

Scor Holding (Switzerland)

AG (Switzerland),

Scor Reinsurance Company

(USA), Scor US Corporation

(USA)

Director of:

Bolloré, Cogedim SAS, Dassault

Aviation, Dexia SA (Belgium),

Invesco Plc (United Kingdom),

Scor Canada Reinsurance

Company (Canada)

Member of the Supervisory

Board of:

Fondation du Risque

Permanent representative of:

Fegascor in SA Communication

& Participation

Non-voting director of:

Financière Acofi (formerly FDC SA),

Gimar Finance & Cie SCA

Member of:

Commission Économique

de la Nation, Conseil

Économique et Social,

Conseil d’administration

du Siècle, Association

de Genève, Comité

des Entreprises d’Assurance,

Board of the French

Foundation for Medical

Research Global Counsellor

of the Conference Board

(1) Directorships and other functions shown in italics are not governed by the provisions of Act no. 2001-401 of 15 May 2001

concerning multiple directorships.

(2) At 31 December 2007.

Jean-François

LEPETIT

Principal function (1) :

Chairman of Conseil national

de la comptabilité

Born on 21 June 1942

Elected on: 18 May 2005 –

AG 2008

First elected to the Board on:

5 May 2004

Number of BNP Paribas

shares held (2) : 825

Offi ce address:

30, boulevard Diderot

75572 Paris Cedex 12, France

Functions at 31 December 2007 (1)

Director of:

Smart Trade Technologies SA,

Shan SA

Member of:

Board of the QFCRA –

Qatar Financial Center

Regulatory Authority – (Doha),

Collège de l’Autorité

des Marchés Financiers

Laurence

PARISOT

Principal function (1) :

Chairman of the Board

of Directors of IFOP SA

Born on 31 August 1959

Elected on: 23 May 2006 –

AG 2009

First elected to the Board on:

23 May 2006

Number of BNP Paribas

shares held (2) : 360

Offi ce address:

6-8, rue Eugène-Oudiné

75013 Paris, France

Functions at 31 December 2007 (1)

Chairman of:

Mouvement des Entreprises

de France (Medef)

Director of:

Coface SA

Member of the Supervisory

Board of:

Michelin

8_9


Hélène

PLOIX

Principal function (1) : Chairman

of Pechel Industries SAS,

Pechel Industries Partenaires

SAS and Pechel Services SAS

Born on 25 September 1944

Elected on: 18 May 2005 –

AG 2008

First elected to the Board on:

21 March 2003

Number of BNP Paribas

shares held (2) : 1,371

Offi ce address:

162, rue du Faubourg

Saint-Honoré

75008 Paris, France

Functions at 31 December 2007 (1)

Director of:

Lafarge, Ferring SA

(Switzerland), Completel NV

(Netherlands)

Member of the Supervisory

Board of:

Publicis

Legal manager of:

Hélène Ploix SARL,

Hélène Marie Joseph SARL,

Sorepe Société Civile

Member of:

Investment Committee

of the United Nations Staff

Pension Fund

Baudouin

PROT

Principal function (1) :

Director and Chief Executive

Offi cer of BNP Paribas

Born on 24 May 1951

Elected on: 18 May 2005 –

AG 2008

First elected to the Board on:

7 March 2000

Number of BNP Paribas

shares held (2) : 87,685

Offi ce address:

3, rue d’Antin

75002 Paris, France

Functions at 31 December 2007 (1)

Director of:

Accor, Pinault-Printemps-

Redoute, Veolia Environnement,

Banca Nazionale del Lavoro

(Italy), Erbé SA (Belgium),

Pargesa Holding SA

(Switzerland)

Member of:

Executive Board of Fédération

Bancaire Française

Louis

SCHWEITZER

Principal function (1) :

Chairman of the Board

of Directors of Renault

Born on 8 July 1942

Elected on: 15 May 2007 –

AG 2010

First elected to the Board on:

14 December 1993

Number of BNP Paribas

shares held (2) : 6,255

Offi ce address:

860, quai de Stalingrad

92109 Boulogne-Billancourt

Cedex, France

Functions at 31 December 2007 (1)

Chairman of the Board

of Directors of:

AstraZeneca Plc

(United Kingdom)

Vice-Chairman

of the Supervisory Board of:

Philips (Netherlands)

Director of:

Électricité de France,

L’Oréal, Veolia Environnement,

AB Volvo (Sweden)

Chairman of:

Haute Autorité de lutte

contre les discriminations

et pour l’égalité (HALDE)

Member of the Advisory

Committee of:

Banque de France,

Allianz (Germany)

Member of the Board of:

Fondation Nationale

des Sciences Politiques,

Institut Français

des Relations Internationales,

Musée du Louvre, Musée

du Quai Branly

(1) Directorships and other functions shown in italics are not governed by the provisions of Act no. 2001-401 of 15 May 2001

concerning multiple directorships.

(2) At 31 December 2007.

Other coporate offi cers

Georges

CHODRON DE COURCEL

Principal function (1) :

Chief Operating Offi cer

of BNP Paribas

Born on 20 May 1950

Number of BNP Paribas

shares held (2) : 66,050

Offi ce address:

3, rue d’Antin

75002 Paris, France

Functions at 31 December 2007 (1)

Chairman of:

Compagnie d’Investissement

de Paris SAS, Financière

BNP Paribas SAS, BNP Paribas

(Suisse) SA (Switzerland)

Director of:

Alstom, Bouygues,

Société Foncière, Financière

et de Participations SA,

Nexans, Banca Nazionale

del Lavoro (Italy), BNP Paribas

ZAO (Russia), Erbé SA

(Belgium), Scor Holding

(Switzerland) AG (Switzerland),

Verner Investissements SAS

Member of the Supervisory

Board of:

Lagardère SCA

Non-voting director of:

Exane, Safran,

Scor SA

Jean CLAMON

Principal function (1) :

Chief Operating Offi cer

of BNP Paribas

Born on 10 September 1952

Number of BNP Paribas

shares held (2) : 51,729

Offi ce address:

3, rue d’Antin

75002 Paris, France

Functions at 31 December 2007 (1)

Director of:

Arval Service Lease,

BNP Paribas Lease Group,

Banca Nazionale del Lavoro

(Italy), Cassa di Risparmio

di Firenze (Italy), Cetelem,

Compagnie Nationale

à Portefeuille (Belgium),

Erbé SA (Belgium), Partecis

Member of the Supervisory

Board of:

Galeries Lafayette, Euro

Securities Partners SAS

Representative of BNP Paribas:

UCB


Remuneration

Remuneration payable to the Group’s corporate offi cers for 2007

Remuneration payable for 2007 Remuneration Directors’ fees (3) Benefi ts in kind (4) TOTAL remuneration

In euros Fixed (1) Variable (2)

Michel Pébereau

Chairman of the Board of Directors

2007 700,000 875,000 29,728 2,490 1,607,218

(2006)

Baudouin Prot

Chief Executive Offi cer

(700,000) (1,051,070) (29,728) (4,609) (1,785,407)

2007 900,000 2,272,608 142,278 5,362 3,320,248

(2006)

Georges Chodron de Courcel

Chief Operating Offi cer

(883,333) (2,324,348) (129,551) (5,227) (3,342,459)

2007 545,833 1,772,120 147,977 4,271 2,470,201

(2006)

Jean Clamon

Chief Operating Offi cer

(500,000) (1,631,593) (125,189) (4,274) (2,261,056)

2007 460,000 702,255 139,690 4,703 1,306,648

(2006) (460,000) (796,130) (130,637) (4,703) (1,391,470)

Total remuneration payable to the Group’s corporate offi cers for 2007 8,704,315

(for 2006) (8,780,392)

(1) Remuneration actually paid in 2007.

(2) Variable remuneration payable for 2006 and 2007, paid the following year. The amount due to Michel Pébereau in respect of 2007 has been capped in accordance

with the provisions on restrictions placed on the variable remuneration payable to corporate offi cers.

(3) The Chairman of the Board of Directors and the Chief Executive Offi cer do not receive directors’ fees from any Group companies other than from BNP Paribas SA,

and from Erbé and BNL in the case of the Chief Executive Offi cer. Directors’ fees received in 2007 by the Chief Executive Offi cer from Erbé and BNL will be deducted

from the variable remuneration paid to him in 2008.

Georges Chodron de Courcel receives fees in his capacity as a director of BNP Paribas Suisse, BNL and Erbé. Jean Clamon receives fees in his capacity as a director of Cetelem,

BNP Paribas Lease Group, Paribas International, Erbé, CNP and BNL. The fees received by Georges Chodron de Courcel and Jean Clamon in their capacity as directors

of these companies will be deducted from the variable remuneration paid to them in 2008.

(4) The Chairman of the Board of Directors, the Chief Executive Offi cer and the Chief Operating Offi cers each have a company car and a mobile telephone.

Directors’ fees

Directors’ fees paid in 2007

Board Committees

In euros Fixed Variable Total Total Total 2007 2006

M. Pébereau 14,864 14,864 29,728 29,728 29,728

P. Auguste 14,864 13,213 28,077 5,352 33,429 33,445

C. Bébéar 14,864 11,561 26,425 4,163 30,588 28,985

J.-L. Beffa 14,864 13,213 28,077 4,163 32,240 30,471

S. Berger 12,386 4,955 17,342 17,342

G. Cromme 14,864 6,606 21,470 5,649 27,119 38,646

J.-M. Gianno 14,864 14,864 29,728 5,946 35,674 35,674

F. Grappotte 14,864 14,864 29,728 21,195 50,923 49,683

A. Joly 14,864 11,561 26,425 11,956 38,381 42,720

D. Kessler 14,864 11,561 26,425 5,352 31,777 31,215

J.-F. Lepetit 14,864 14,864 29,728 5,946 35,674 35,674

L. Parisot 14,864 8,258 23,122 991 24,113 11,892

H. Ploix 14,864 13,213 28,077 5,352 33,429 35,674

B. Prot 14,864 14,864 29,728 29,728 29,728

L. Schweitzer 14,864 13,213 28,077 19,956 48,033 46,710

Others (*) 49,794

Total 220,483 181,674 402,157 96,021 498,178 530,038

(*) L. Owen-Jones, L. de Palacio et J.-F. Trufelli, who were in offi ce in 2005-2006 and were therefore listed in the table of benefi ciaries of director's fees in the 2006 Annual Report.

10_11


Shareholder information

Share capital

As at 31 December 2006, BNP Paribas’ share capital stood

at EUR 1,860,934,954 divided into 930,467,477 shares.

Details of the historical share performance are provided in

the “Changes in share capital” section (p. 228).

In 2007, three series of transactions led to changes in the

number of shares outstanding:

6,464,608 shares were issued upon exercise of stock

options;

439,358 shares were issued in relation to the merger

with BNL;

Changes in shareholder structure

Changes in the Bank’s ownership structure over the last three years are as follows:

Shareholders

32,111,135 shares repurchased by the Bank were subsequently

cancelled.

As at 31 December 2007, BNP Paribas’ share capital stood

at EUR 1,810,520,616 divided into 905,260,308 shares

with a par value of EUR 2 (1) .

The shares are all fully paid-up and are held in registered

or bearer form at the choice of their holders, subject to

compliance with the relevant legal provisions. None of

the Bank’s shares entitle their holders to an increased

dividend or double voting rights or limit the exercise

of voting rights.

31 December 2005 31 December 2006 31 December 2007

Number

of shares

(in millions)

% interest

and voting

rights (1)

Number

of shares

(in millions)

% interest

and voting

rights (1)

Number

of shares

(in millions)

% interest

and voting

rights (1)

AXA 47.64 5.7% 52.65 5.7% 53.56 5.9%

Employees 47.09 5.6% 49.36 5.3% 52.64 5.8%

- o/w corporate mutual funds 34.46 4.1% 35.86 3.9% 38.53 4.2%

- o/w direct ownership 12.63 1.5% 13.50 1.4% 14.11 1.6%

Corporate offi cers 0.22 nm 0.26 nm 0.36 nm

Treasury shares ( * ) 9.06 1.1% 19.25 2.1% 9.14 1.0%

Public 57.00 6.8% 59.55 6.4% 57.00 6.3%

Institutional investors 621.11 74.1% 693.47 74.5% 717.40 79.3%

(o/w “Socially Responsible Investors”) (6.53) (0.8%)

(7.50) (0.8%) (9.52) (1.1%)

- Europe 509.64 60.8% 480.61 51.6% 516.54 57.1%

- Outside Europe 111.47 13.3% 212.86 22.9% 200.86 22.2%

Other and unidentifi ed 56.13 6.7% 55.93 6.0% 15.16 2.7%

TOTAL

( ) * Excluding trading desks’ working positions.

838.25 100.0% 930.47 100.0% 905.26 100.0%

(1) Pursuant to Article 223-11 of the AMF General Regulation, voting rights must be calculated based on the total number of equities that have voting rights attached,

including those whose voting rights have been suspended, e.g. treasury shares. As BNP Paribas rigorously applies a “one share, one vote” principle, percentage interest

and percentage voting rights can be considered identical.

BNP Paribas ownership structure as at 31 December 2007

AXA 5.9%

Employees 5.8%

(-o/w mutual funds 4.2%,

-o/w direct ownership 1.6%)

Individual shareholders 6.3%

Non-European institutional

investors 22.2%

European institutional

investors 57.1%

Other and unidentified 2.7%

To the best of BNP Paribas’ knowledge, no shareholder

other than AXA owns more than 5% of BNP Paribas’ capital

or voting rights, nor does any agreement exist whose

implementation could at a later date result in a change in

BNP Paribas’ form of control.

(1) Since the close of the fi nancial year, a total of 435,137 shares have been issued upon exercise of stock options. As at 28 January 2008, BNP Paribas’ share capital stood

at EUR 1,811,390,890, divided into 905,695,445 shares with a par value of EUR 2.


Euros

100

90

80

70

60

50

Share performance

When the shareholders of BNP and Paribas approved the merger between the

two banks at the Extraordinary General Meeting of 23 May 2000, BNP shares

became BNP Paribas shares. The Euroclear-France code for BNP Paribas is

the same as the previous BNP code (13110). Since 30 June 2003, BNP Paribas

shares have been registered under ISIN code FR0000131104.

BNP shares were fi rst listed on the Cash Settlement Market of the Paris Stock

Exchange on 18 October 1993, following privatisation, before being transferred

to the Monthly Settlement Market on 25 October of that year. When

the monthly settlement system was eliminated on 25 September 2000,

BNP Paribas shares became eligible for Euronext’s Deferred Settlement

Service (SRD). The shares are also traded on SEAQ International in London and

on the Frankfurt Stock Exchange. Since 24 July 2006 they have been traded

on the MTA International in Milan and have been listed on the Tokyo Stock

Exchange since 13 March 2000 (and the First Section since 7 February 2005).

Since privatisation, a Level 1 144A ADR programme has been active in the

USA, where JP Morgan Chase is the depositary bank (2 ADRs correspond to

1 BNP Paribas share).

To help increase the number of shares held by individual investors, BNP Paribas

carried out a two-for-one share split on 20 February 2002, reducing the par

value of the shares to EUR 2.

BNP became a component of the CAC 40 index on 17 November 1993 and

of the Euro Stoxx 50 index on 1 November 1999. Since 18 September 2000,

it has been one of the companies making up the Dow Jones Stoxx 50 index.

In 2007, BNP Paribas joined the Global Titans 50, an index comprising the

50 largest corporations worldwide. BNP Paribas shares are also included in

the main benchmark indexes for sustainable development: ASPI Eurozone,

FTSE4Good (Global and Europe 50), DJ SI World and the DJ SI Stoxx indexes.

All of these listings have fostered liquidity and share price appreciation, as

BNP Paribas shares necessarily feature in every portfolio and fund that tracks

the performance of these indexes.

Share performance

between 31 December 2004 and 31 December 2007

Comparison with the DJ Stoxx 50, DJ Stoxx Bank and CAC 40

(indexes rebased on share price)

31/12/04

28/02/05

30/04/05

30/06/05

31/08/05

31/10/05

31/12/05

28/02/06

BNP Paribas Annual Report 2007 /////// Shareholder information

30/04/06

30/06/06

31/08/06

31/10/06

31/12/06

28/02/07

30/04/07

30/06/07

31/08/07

31/10/07

31/12/07

BNP Paribas

DJ Stoxx Bank

France CAC 40

DJ Stoxx 50

Source: Datastream.

12_13


Average monthly share prices and monthly highs and lows since January 2006

70.25

72.83

68.07

78.59

71.09

77.99

72.80

77.35

72.90

78.00

71.85

74.85

67.30

High

Low

Average

74.94 75.26 75.06 75.08 71.46 74.60

Source: Datastream.

81.22 83.34 86.31 84.38 81.72

77.40

70.80

83.85

75.05

85.20

81.95

87.95

84.10

86.85

80.90

83.15

79.90

As at 31 December 2007, the BNP Paribas share was

listed at EUR 74.22, down 10.20% compared with

29 December 2006, when it was listed at EUR 82.65.

By way of comparison, during 2007 the CAC 40 increased

by 1.31%, the DJ Stoxx 50 dropped down by 0.36% and

the DJ Stoxx Bank index fell by 16.87%. After marking

an all-time high at EUR 94.25 in May, the BNP Paribas

share was dragged down by the widespread loss of confi

dence affecting banks, triggered by the subprime mortgage

crisis in the US. However, as BNP Paribas has lower

exposure to the crisis compared with many competitors,

the share performance over the full year outdistanced

banking-sector indexes.

From 3 January 2005 to 31 December 2007, the

BNP Paribas share gained 40.33%, compared

with rises of 46.92%, 32.76% and 19.58% by the

CAC 40, DJ Stoxx 50 and DJ Stoxx Bank indexes

respectively.

84.42 84.44

2007 Trading volume on Euronext Paris (daily average)

in millions of euros

in thousands of shares

Source: Euronext Paris.

319.3

3,783

January

434.8

5,187

February

498.4

6,397

March

474

5,710

April

644.1

7,083

May

467.4

5,266

June

78.16

82.71

91.08 88.98 85.39 79.02

75.23

77.67

85.55

82.70

87.65

78.94

80.42

75.43

86.45

77.98

94.25

86.40

91.51

85.86

88.67

79.12

85.45

74.67

78.30

71.95

82.41

73.45

71.60

75.09

77.15

68.45

78.22

73.08

January 06

February 06

March 06

April 06

May 06

June 06

July 06

August 06

September 06

October 06

November 06

December 06

January 07

February 07

March 07

April 07

May 07

June 07

July 07

August 07

September 07

October 07

November 07

December 07

BNP Paribas’ market capitalisation totalled

EUR 67.2 billion as at 31 December 2007, representing

the 5th-largest capitalisation in the CAC 40 index after

the Group dropped from fourth place due to the Arcelor/

Mittal merger. In terms of free fl oat, BNP Paribas is still the

3rd-largest in the Paris index. At the end of the period,

BNP Paribas ranked 11th in the DJ Euro Stoxx 50 on the

basis of free fl oat.

Daily transaction volume over the year averaged

5,821,304 shares, up 33.5% on the 4,358,733 shares

traded on average per session in 2006. This is a clear

indication of the stock’s increasing liquidity.

379.3

4,492

July

548.4 520.5

6,935

August

6,913

September

398.7

5,129

October

567.7

7,920

November

369.1

4,897

December


Yield and performance data

French GAAP IFRS

In euros 2003 2004 2005 2006 2007

Earnings per share (1) ( * )

4.30 5.50 7.00 8.00 8.50

Net assets per share (2) ( * )

32.70 35.90 45.80 49.80 52.40

Net dividend per share 1.45 2.00 2.60 3.10 3.35 (3)

Payout rate (in %) (4)

34.80 37.90 37.40 40.30 39.80 (3)

Share price

High (5) ( * ) 49.53 54.57 68.71 88.50 95.07

Low (5) ( * ) 32.40 45.71 50.31 66.65 67.54

Year-end ( * ) 49.53 52.89 67.82 82.65 74.22

CAC 40 index on 31 December 3,557.90 3,821.16 4,715.23 5,541.76 5,614.08

( * ) Data in the above table have been adjusted to refl ect the share issue with preferential subscription rights in March 2006

(adjustment ratio = 0.992235740050131).

(1) Based on the average number of shares outstanding during the year.

(2) Before dividends. Net book value based on the number of shares outstanding at year-end.

(3) Subject to approval at the Annual General Meeting of 21 May 2008.

(4) Dividend recommended at the Annual General Meeting expressed as a percentage of earnings per share.

(5) Registered during trading.

Creating value for shareholders

Total shareholder return (TSR)

Calculation parameters:

The dividend is assumed to have been reinvested in BNP shares then

BNP Paribas shares and includes the avoir fi scal tax credit at a rate of 50%

(until it was abolished at the beginning of 2005);

Returns are gross returns, i.e. before any tax payments or brokerage fees.

Calculation results:

The following table indicates, for the various durations given and up to

31 December 2007, the total return on a BNP share, then a BNP Paribas share,

as well as the effective annual rate of return.

Holding period Investment date

(opening price)

Initial investment

multiplied by

BNP Paribas Annual Report 2007 /////// Shareholder information

Effective annual

rate of return

Since privatisation 18/10/1993 x 6.89 +14.55%

14 years 03/01/1994 x 5.30 +12.65%

13 years 03/01/1995 x 6.06 +14.87%

12 years 02/01/1996 x 6.58 +16.99%

11 years 02/01/1997 x 7.05 +19.43%

10 years 02/01/1998 x 4.25 +15.57%

9 years 04/01/1999 x 2.78 +12.06%

Since inception of BNP Paribas 01/09/1999 x 2.72 +12.76%

8 years 03/01/2000 x 2.15 +10.05%

7 years 02/01/2001 x 2.04 +10.70%

6 years 02/01/2002 x 1.85 +10.85%

5 years 02/01/2003 x 2.29 +18.00%

4 years 02/01/2004 x 1.74 +14.93%

3 years 03/01/2005 x 1.56 +15.93%

2 years 02/01/2006 x 1.17 +8.24%

1 year 02/01/2007 x 0.92 -8.07%

14_15


Comparison of growth

in investment

of EUR 39.41

over 5 years

in euros

44.52

Livret A

Comparative total

yields over 5 years

for an investment

of EUR 39.41

in euros

5.11

Livret A

46.69

French gov.

notes

7.28

French gov.

notes

90.13

BNP Paribas

shares

50.72

BNP Paribas

shares

BNP Paribas uses two methods to measure the value created for

shareholders, based on a long- to medium-term investment period

refl ecting the length of time that the majority of individual investors hold

their BNP Paribas shares.

Five-year comparison of an investment in BNP Paribas shares with the

“Livret A” passbook savings account and medium-term government notes.

In this calculation, we compare the creation of shareholder value over the same

period through investment in BNP then BNP Paribas shares, with two risk-free

investments: the “Livret A” passbook savings account offered by the French

savings bank network and medium-term French government notes (OATs).

Total return on an investment in BNP Paribas shares:

Initial investment = 1 share at the opening price on 2 January 2003 =

EUR 39.41.

Dividends reinvested.

Exercise of pre-emptive rights to subscribe for shares at the time of the

March 2006 share issue.

Value at 31 December 2007:

1.2143 shares at EUR 74.22 = EUR 90.13.

Investment of EUR 39.41 on 1 January 2003 in a “Livret A” passbook account.

At the investment date, the offi cial interest rate on Livret A accounts was 3%.

The rate was decreased to 2.25% on 1 August 2003 and then to 2% on

1 August 2005. It was revised twice in 2006, on 1 February to 2.25% and 1 August

to 2.75%, and once in 2007, to 3% on 1 August. As at 31 December 2007, the

account balance was EUR 44.52, representing growth of EUR 5.11, barely

more than 10% of the increase achieved by the BNP Paribas share – which

gained EUR 50.72 over the same period.

The value created through an investment in BNP Paribas shares, refl ecting the

additional risk involved, amounts to 90.13 – 44.52 = EUR 45.61 per share over

fi ve years.

Investment of EUR 39.41 on 1 January 2003 in French government notes.

The fi ve-year interest rate (BTAN) on that date was 3.4719%; at the end of

each subsequent year, interest income is reinvested in a similar note under

the following terms:

3.3467% (BTAN) in January 2004 for 4 years;

2.7154% (BTAN) in January 2005 for 3 years;

2.87199% (BTAN) in January 2006 for 2 years;

4.028% in January 2007 for 1 year (Euribor).

At the end of fi ve years, the accrued value of the investment is EUR 46.69,

representing growth of EUR 7.28, less than 15% of the increase achieved by

the BNP Paribas share.

The additional value created by choosing BNP Paribas shares as the investment

vehicle is therefore 90.13 – 46.69 = EUR 43.44 per share over fi ve years.


Communication with shareholders

BNP Paribas endeavours to provide all shareholders

with clear, consistent, high-quality information at regular

intervals, in accordance with best market practice and the

recommendations of stock market authorities.

The Investor Relations team informs institutional investors

and fi nancial analysts, in France and abroad, of the Group’s

strategies, major events concerning the Group’s business and,

of course, the Group’s results which are published quarterly.

In 2008, for example, the following dates have been set (1) :

20 February 2008: publication of the 2007 annual results;

14 May 2008: results for the fi rst quarter of 2008;

6 August 2008: publication of the 2008 half-year results;

5 November 2008: results for the third quarter of 2008.

Informative briefi ngs are organised several times a year, when

the annual and half-year results are released, or on specifi c

topics, providing senior management with an opportunity

to present the BNP Paribas Group and its strategy. There is

also a Relations Offi cer responsible for liaising with managers

of ethical and socially responsible funds.

The Individual Shareholder Relations Department

informs and attends to queries of the Group’s 601,000 or

so individual shareholders (source: 31 December 2007

TPI Survey). A half-yearly fi nancial newsletter informs both

members of the “Cercle BNP Paribas” and other shareholders

of important events concerning the Group, and

a summary of the matters discussed during the Annual

General Meeting is sent out in July. During the year, senior

management presents the Group’s policy to individual

shareholders at meetings organised in various French cities

and towns (for example, in 2007, meetings were held

in Grenoble on 15 March, in Nantes on 25 September

and in Toulouse on 2 October). Also, BNP Paribas representatives

met and spoke with over 1,000 people at

the “Actionaria” shareholder fair held in Paris on 16 and

17 November 2007.

In 1995, the “Cercle BNP Paribas” was set up for individual

shareholders holding at least 200 shares. The Cercle currently

counts 47,500 shareholder members. Three times a

year, in alternation with fi nancial newsletters, they receive

La Vie du Cercle, a publication inviting them to take part

in artistic and cultural events with which BNP Paribas is

associated, as well as training sessions. These include

seminars on trading in equities (including technical analysis

and fi nancial research), on private asset management and

warrants, as well as economic-update sessions and seminars

about how to manage one’s fi nances on the internet,

organised by BNP Paribas teams specialising in these fi elds.

In addition, the Bank regularly organises scientifi c conferences

and visits to industrial sites. The seminars are held

(1) Subject to alteration at a later date.

BNP Paribas Annual Report 2007 /////// Shareholder information

in Paris and the provinces, on weekdays and the weekend,

to enable as many people as possible to attend. Illustrating

the growing variety of the offering, in 2007, 389 events, a

9% increase on 2006, were organised for 16,351 participants.

One-third of the events were held in the provinces

and two-thirds in Paris and the Paris region. Shareholders

can obtain information about these services by dialling a

special freephone number (in France): 0 800 666 777.

A telephone news service can also be accessed through

the same number, offering a wide range of information

to BNP Paribas shareholders, such as the share price,

shareholders’ events, news and interviews.

The BNP Paribas website (http://invest.bnpparibas.com)

can be consulted in both French and English. Recently

large portions of the website have also been viewable in

Italian. It provides information on the Group, including press

releases, key fi gures and details of signifi cant developments

and presentations. All fi nancial documents such as Annual

Reports and Reference Documents can also be viewed

and downloaded. Publications compiled by the Bank’s

Economic Research unit can be viewed on the website as

well. The latest share performance data and comparisons

with major indexes are also obviously available on this website.

Since 2007, it has been possible to calculate the return

on an investment in BNP Paribas shares – one of the many

tools that visitors to our website have at their disposal.

The Investors/Shareholders corner now includes all reports

and presentations concerning the Bank’s business and

strategy, irrespective of the original target audience (individual

shareholders, institutional investors, asset managers

or fi nancial analysts). The website also has a section entitled

“To be a shareholder”, which was specifi cally designed

with individual shareholders in mind, offering information

tailored to their needs and details of proposed events. In

addition, there is a specifi c section dedicated to the Annual

General Meeting of Shareholders, which includes information

regarding the conditions for attending the meeting, ways

of voting, practical questions, as well as a presentation of

the resolutions and the complete text of all speeches made

by corporate offi cers. Webcasts of the sessions can be

viewed by visiting the section entitled “General shareholders

meeting” then by clicking on Records in the submenu.

BNP Paribas

Shareholders’ Guide

The BNP Paribas

Shareholders’ Guide

was designed to provide

individual shareholders

with full details on

the share’s performance

and the Bank’s

achievements. Its main

purpose is to give these

investors a better idea

and a deeper understanding

of the economic environment

and the markets in which

BNP Paribas operates.

The Guide can be obtained

on request from

the Individual Shareholder

Relations Department.

16_17


BNP Paribas ranked

among the winners

of the BoursoScan 2007

website survey

Boursorama and business

partner OpinionWay, which

has expertise in the analysis

of individual shareholders,

have for the past seven years

conducted an annual survey

in France, BoursoScan, with

a view to fi nding the best

websites of companies listed

on the Paris Stock Exchange.

As part of the 2007 edition,

more than 6,340 internet users

gave their opinion on websites

they had visited. In total,

250 sites were ranked in terms

of features that participants

deemed to be important:

topicality of the information

shown, the transparency

of fi nancial news and ease

of browsing.

The BNP Paribas website

devoted to shareholders

and investors, http://invest.

bnpparibas.com, received

the “Prix Coup de Cœur”

(the eye-pleaser award),

indicating that the website

was the favourite among

fi rst-time visitors. This serves

as an acknowledgment

of the accessibility and

instructiveness of the

information supplied by

BNP Paribas to individual

investors.

The French Minitel service

Recent information about

the BNP Paribas Group is also

available on the French Minitel

service 3614 BNPPACTION,

at a cost of EUR 0.057

per minute. Through this

service, shareholders can ask

questions, leave messages

or order documents.

Shareholder Liaison Committee

Shareholder Liaison Committee

After its formation in 2000, the new BNP Paribas Group decided to create a

Shareholder Liaison Committee to help the Group communicate better with

its individual shareholders. At the Shareholders’ Meeting that approved the

BNP Paribas merger, the Chairman of BNP Paribas kicked off the nomination

process, which culminated in the naming of the committee members at the

end of 2000.

Headed by Michel Pébereau, the committee includes ten shareholders who

are both geographically and socioeconomically representative of the individual

shareholder population, and two employees or former employees. Each member

serves a three-year term. When their terms expire, announcements are published

in the press and in the Group’s various fi nancial publications, inviting new

candidates to come forward. Any shareholder can become a candidate.

At 1 January 2008, the members of the Liaison Committee were as follows:

Michel Pébereau, Chairman;

Franck Deleau, resident of the Lot département;

Nicolas Derely, resident of the Paris area;

Jean-Louis Dervin, residing in Caen;

Jacques de Juvigny, resident of the Alsace region;

André Laplanche, residing in Cavaillon;

Jean-Marie Laurent, resident of the Oise département;

Dyna Peter-Ott, residing in Strasbourg;

Jean-Luc Robaux, residing in Nancy;

Marie-Nathalie Rodrigues, resident of the Allier département;

Thierry de Vignet, resident of the Dordogne département;

Roseline Labat, BNP Paribas employee;

Bernard Coupez, President of ASRAS BNP Paribas (the Association of Employee,

Retiree and Former Employee Shareholders of the BNP Paribas Group).


In accordance with the committee’s Charter – the internal

rules that all members have subscribed to – the committee

met twice in 2007, on 23 March and 14 September, in

addition to taking part in the Annual General Meeting and

attending the “Actionaria” shareholder fair. The main topics

broached included:

the periodical publications which provide information on

the Group’s achievements and strategy;

the 2006 Annual Report;

improvements required for the website devoted to relations

with fi nancial market participants;

initiatives concerning preparations for the Annual General

Meeting;

BNP Paribas’ participation in the “Actionaria” shareholder

fair. At this event, several Liaison Committee members

explained the role played by the committee to people

who visited the Bank’s stand.

Dividend growth (in euros per share)

0.54

1997

0.75

1998

0.88

1999

1.13 1.20 1.20

BNP Paribas registered shares

As at 31 December 2007, 26,140 shareholders had shares

registered with BNP Paribas.

½ Shares registered directly with BNP Paribas

Shareholders whose shares are registered directly with

BNP Paribas:

automatically receive all documents regarding the Bank

which are sent to shareholders;

are automatically entitled to call a French freephone

number (0 800 600 700) to place buy and sell orders;

benefi t from special, discounted brokerage fees;

have access to “GIS Nomi” (http://gisnomi.bnpparibas.com),

a fully secure dedicated web server, in order to view registered

share accounts and account movements as well

as place and track trading orders;

BNP Paribas Annual Report 2007 /////// Shareholder information

2000

( * ) Subject to approval at the Anuual General Meeting of 21 May 2008.

The dividends for the years 1997-2000 have been adjusted to refl ect the two-for-one share split carried out on 20 February 2002.

(1) Dividend recommended at the Annual General Meeting expressed as a percentage of earning per share.

2001

2002

Dividend

At the 21 May 2008 Annual General Meeting, the Board

of Directors will recommend a dividend of EUR 3.35 per

share, an increase of 8.1% compared with the 2007 dividend.

The dividend will be payable as from 29 May 2008,

subject to approval at the Annual General Meeting.

The total amount of the payout is EUR 3,034.1 million,

an increase of 4.9% compared with EUR 2,891.9 million

in 2007. The proposed payout rate is 39.8% (1) .

The Group’s objective is to increase the dividend

to refl ect growth in income and the optimised management

of available capital.

Timeframe for claiming dividends: after fi ve years, any

unclaimed dividends will be forfeited and paid to the French

Treasury, in accordance with applicable legislation.

1.45

2003

2.00

2004

and, naturally, pay no custodial fees, and are systematically

invited to General Meetings.

½ Registered shares held in an administered account

BNP Paribas is also extending its administered share

account services to institutional shareholders. For institutional

shareholders, this type of account combines the

main benefi ts of holding shares in bearer form with those

of holding registered shares:

shares can be sold at any time, through the shareholder’s

usual broker;

the shareholder can have a single share account, backed

by a cash account;

the shareholder is systematically invited to attend and

vote at General Meetings, without the invitation being

sent through a third party;

2.60

the shareholder can take part in voting via the internet.

2005

3.10

2006

3.35 ( * )

2007

18_19


Annual General Meeting

The last Annual General Meeting was held on 15 May 2007

on fi rst call. The text of the resolutions and the video of

the meeting can be viewed on the BNP Paribas website,

which is where the original live webcast took place. The

composition of the quorum and the results of the votes cast

Breakdown of quorum

The 2007 Annual General Meeting was an additional

opportunity for BNP Paribas to demonstrate its commitment

to sustainable development. BNP Paribas seeks

to create solid, recurring value, acting as a mark of quality

and testifying to its respect not only for “traditional” partners

comprising shareholders, clients and employees, but

also for the community at large. It seemed appropriate

that these principles be refl ected in the Group’s General

Meetings. That is why it was decided, in conjunction with

the Shareholder Liaison Committee, to donate EUR 10 for

every attending investor to the “Coups de pouce aux projets

were posted online the day after the meeting. In addition,

the meeting was written about in the specialist press and

a specifi c letter was sent to shareholders summarising

the meeting.

The quorum breaks down as follows:

Number of

shareholders

(%) Number

of shares

Present 1,784 15.55% 96,725,671 23.45%

Proxy given to spouse or another shareholder 56 0.49% 46,699 0.01%

Proxy given to Chairman 6,560 57.19% 29,784,996 7.22%

Postal votes 3,070 26.77% 285,889,393 69.32%

TOTAL 11,470 100% 412,446,759 100%

Quorum

Total no. of shares issued excluding treasury stock 903,146,769 45.67%

All resolutions proposed to the shareholders were approved.

Results

ORDINARY MEETING

Rate of approval (%)

Resolution 1: Approval of the consolidated balance sheet as at 31 December 2006 and the consolidated profi t

and loss account for the year then ended

98.59%

Resolution 2: Approval of the balance sheet of the Bank as at 31 December 2006 and the profi t and loss account

for the year then ended

98.59%

Resolution 3: Appropriation of net income and dividend distribution 99.83%

Resolution 4: Agreements and commitments governed by Article L. 225-38 of the French Commercial Code 94.84%

Resolution 5: Share buybacks 99.14%

Resolution 6: Ratifi cation of the appointment of Suzanne Berger Keniston as a director 94.66%

Resolution 7: Renewal of the term of offi ce of Louis Schweitzer as a director 86.95%

Resolution 8: Powers to carry out formalities relating to the Ordinary Meeting 99.58%

EXTRAORDINARY MEETING

Resolution 9: Amendment of the fi fteenth resolution of the Annual General Meeting of 18 May 2005 to promote employee

profi t-sharing and share ownership, in accordance with the French Act of 30 December 2006

97.23%

Resolution 10: Amendment of the twenty-second resolution of the Annual General Meeting of 23 May 2006 to promote

employee profi t-sharing and share ownership, in accordance with the French Act of 30 December 2006

97.70%

Resolution 11: Reduction in the Bank’s capital by cancelling shares 99.51%

Resolution 12: Approval of the merger of BNL into BNP Paribas 99.51%

Resolution 13: Approval of the merger of Compagnie Immobilière de France into BNP Paribas 99.50%

Resolution 14: Approval of the merger of Société Immobilière du 36, avenue de l’Opéra into BNP Paribas 99.51%

Resolution 15: Approval of the merger of CAPEFI into BNP Paribas 99.80%

Resolution 16: Amendment of the Bank’s Articles of Association relating to attendance at General Meetings 99.81%

Resolution 17: Powers to carry out formalities relating to the Extraordinary Meeting 99.82%

du personnel” programme (A helping hand for employee

projects). The programme was specifi cally developed by

the BNP Paribas Foundation to encourage public interest

initiatives for which Bank staff personally volunteer their

time and efforts; the sums collected (EUR 17,840 in 2007)

are donated in addition to the funds that the Bank already

grants to this programme via the BNP Paribas Foundation,

which operates under the aegis of the Fondation de France.

The total amount of these contributions was distributed

among 44 projects, all of them initiated by Bank employees,

in amounts ranging from EUR 500 to EUR 3,800. The

(%)


sums to be allocated were determined on the basis of

project size, the quality of the application and, naturally, the

degree of commitment of the staff involved in the project.

As in previous years, a great deal of fi nancial support was

channelled into humanitarian initiatives. This was followed

by projects working with various types of handicaps,

community integration through sport and other activities,

healthcare promotion and socioeconomic integration

projects. Most of these projects were centred on initiatives

in France. Of the other projects, two of them concerned

another European country, one was conducted in South

America, seven in Africa and fi ve in Asia.

The allocation of funds is systematically detailed in the

notice of invitation for the next General Meeting.

The procedures for BNP Paribas’ General Meetings are

defi ned in Article 18 of the Bank’s Articles of Association.

The Board of Directors calls an Ordinary General Meeting at

least once a year to vote on the agenda set by the Board.

The Board may call Extraordinary General Meetings for

the purpose of amending the Articles of Association, and

especially to increase the Bank’s share capital. Resolutions

are adopted by a two-thirds majority of shareholders

present or represented.

The Ordinary and Extraordinary General Meeting may

be called in a single notice of Meetings and held on the

same date. BNP Paribas will hold its next Ordinary and

Extraordinary General Meeting on 21 May 2008.

½ Notice of meetings

Holders of registered shares are notified by post.

The notice of meeting contains the agenda, the draft

resolutions and a postal voting form.

Holders of bearer shares are notifi ed via announcements

in the press, particularly investor and fi nancial journals.

In addition to legal requirements, BNP Paribas sends the

following documents aimed at boosting attendance:

- notices of meetings and a postal voting form for shareholders

who own over a certain number of shares (set

at 250 shares in 2007); these same documents may

accessed freely on the website;

- information letters concerning the Annual General

Meeting and the attendance procedures. In 2007, these

were sent to all holders of at least 150 bearer shares.

In total, nearly 71,000 of the Bank’s shareholders personally

received the information needed to participate.

In addition, staff at all sales facilities of the BNP Paribas

network are specifi cally trained to provide the necessary

assistance and carry out the required formalities.

BNP Paribas Annual Report 2007 /////// Shareholder information

½ Attendance at meetings

Any holder of shares may gain admittance to Annual

and Extraordinary General Meeting, provided that the

shares have been recorded in their accounts for at least

three days. Holders of bearer shares must in addition

present an entry card or certifi cate stating the ownership

of the shares.

½ Voting

Shareholders who are unable to attend a General Meeting

may complete and return to BNP Paribas the postal

voting form/proxy enclosed with the notice of meeting.

This document enables them to either:

vote by post;

give proxy to their spouse or another shareholder

(individual or legal entity);

give the proxy to the Chairman of the meeting or indicate

no proxy.

Shareholders or their proxies present at the meeting are

given the necessary equipment to cast their votes. Since

the General Meeting of 13 May 1998, BNP Paribas has

used an electronic voting system.

Since the General Meeting of 28 May 2004, shareholders

can use a dedicated, secure internet server to send all the

requisite attendance documents prior to Annual General

Meeting (http://gisproxy.bnpparibas.com).

Disclosure thresholds

In addition to the legal thresholds, and in accordance with

Article 5 of the Bank’s Articles of Association, any shareholder,

whether acting alone or in concert, who comes

to hold directly or indirectly at least 0.5% of the capital or

voting rights of BNP Paribas, or any multiple of that percentage

down to 5%, is required to notify BNP Paribas by

registered letter with return receipt.

Once the 5% threshold is reached, shareholders are

required to disclose any increase in their interest representing

a multiple of 1% of the capital or voting rights of

BNP Paribas.

The disclosures described in the previous two paragraphs

shall also apply when the shareholding falls below the

above-mentioned thresholds.

In the case of failure to comply with these disclosure

requirements, the undisclosed shares will be stripped of

voting rights at the request of one or more shareholders

who hold a combined interest of at least 2% of the capital

or voting rights of BNP Paribas.

20_21


INNOVATION

The spirit of innovation –

the life blood of the Bank

for a changing world

Constantly coming up with innovative new ideas is a major competitive challenge for BNP Paribas. Forging new

ground in our business lines allows us to gain a signifi cant advantage for the future. The Group brings its four

core values into play in its endorsement of innovation. Creativity and responsiveness are the driving forces

that lead to original new ideas, and ambition and commitment light the way for innovation and give us a clearer

view of the resources we need to promote it. To reward and acknowledge the value of our employees’ capacity

to innovate, we organised two key events in 2007: the Innovation and Innov@ction Awards, and the Innovation

and Technology Days.

The Innovation Awards, April 2007

These awards go beyond the framework of research activities alone, in keeping with a broader perspective intended

to encourage the spirit of innovation among all our employees. Fourteen Prizes were awarded in recognition of a wide

variety of innovative practices including business-and internal effi ciency-related innovations resulting from initiatives

taken by employees or teams for whom innovation is considered to be part of their daily work, and “innov@ction” innovations

linked to ideas put forward on both an individual and team basis with the aim of improving products, services

or processes that do not obviously fall within the remit of the employees concerned.

Business Innovation Awards

Asset Management and Services:

Gestion Privilège and life insurance discretionary

management mandates

Banque Privée France, BNP Paribas Asset Management

and BNP Paribas Assurance launched the market’s fi rst

discretionary management mandates in relation to life

assurance products.

French Retail Banking: Tercéo

Tercéo is the fi rst banking service to offer customers the

option of paying with a bank card without using revolving

credit.

Corporate and Investment Banking (CIB):

Vega Vessel Securitisation

A world fi rst for fi nancing ships through securitisation,

allowing the shipping industry access to AAA capital

markets.

International Retail Services (IRS):

Cetelem Web tools

Cetelem’s mascot, “Credito”, acts as an “intelligent

agent” to assist internet users and offer them a variety of

products. This is a revolutionary method of selling loans

online.

BNL banca commerciale (BNL bc): marketing alert

BNL bc has created a model for attracting client business

with a marketing plan that is activated the moment a customer

enters the branch.

Innovation Awards for Internal Effi ciency

AMS/BNP Paribas Securities Services (BP2S)

Complete transaction processing centre: a single centre

for multiple territories and products.

AMS/BNP Paribas Assurance: K2 Sharing Days

Accelerating the exchange of best practices to increase

business through an approach that places innovation and

sharing at the heart of corporate culture.

CIB: Induction seminar for international executives

Executives from different countries and with different backgrounds

came together at an international induction seminar.

One of the initiatives involved participants singing together

as a choir – a successful experiment that fostered a closer

culture within the Corporate and Investment Banking Division,

with music as a celebration of both diversity and unity.

Information Technology and Processes (ITP)

in partnership with French Retail Banking

Business Services Management (BSM) approach: a

system for monitoring a process from A to Z, from IT

production to the performance of transactions, increasing

responsiveness to clients.

IRS – TEB/Corporate Communications

and Advertising: SME Academy

TEB has created a SME academy to help its clients in the small

and medium business sector to improve their competitive edge.

A novel and well-received form of banking assistance.

IRS/Bank of the West: Electronic Deposit Service

A unique service for depositing cheques online.


Winners of the Innovation Awards 2007, with B. Lemée and B. Prot.

Innov@ction Awards

These prizes are awarded for suggestions made by employees, individually or as a team and irrespective of their role,

to improve services or procedures and contribute to customer satisfaction.

Innov@ction Product & Service Award

French Retail Banking – Neuilly-sur-Seine branches:

Children's play areas

Creation of dedicated children’s play areas at retail banks

in Neuilly-sur-Seine, just west of Paris. An original concept

that benefi ts not only children, but their parents too.

Innovation and Technology Days, June 2007: over 20 countries,

20 business lines, 57 speakers and 115 exhibitors.

A total of 800 participants contributed to the success

of this celebration of innovation.

BNP Paribas Annual Report 2007 /////// Innovation

Innov@ction Process Awards

AMS-BNP Paribas Securities Services (BP2S)

The Competition Dashboard: a sound benchmark

analysis and unique source of information.

AMS-BNP Paribas Real Estate

A new digital pen: a pen that digitally stores handwritten

information in order to save time and ensure reliability

on worksites.

At these two events innovation was put forward as both a tool for mobilising employees and a factor in improving

customer service.

22_23


BNP Paribas, London, 10 Harewood Avenue


inv

and

stment

Corporate

banking

24_25


BNP Paribas Corporate and Investment Banking:

a robust and diversifi ed business model

With almost 16,000 employees, operations in more than 50 countries, 28% of the Group’s revenues and 35% of its

pre-tax net income, BNP Paribas Corporate and Investment Banking (BNP Paribas CIB) operates in advisory and

capital markets (Corporate Finance, Equities and Fixed Income) as well as in fi nancing businesses (Specialised and

Structured Finance).

BNP Paribas CIB excels in three particular sectors:

derivatives – it is a leading global player in interest rates, credit, forex, commodity and equity derivatives;

capital markets – it is among the Top 10 European houses for both Equity Capital Markets and Debt Capital Markets

(bond issues, securitisation, syndicated loans, etc.);

specialised fi nance – it is a world leader for acquisition, export, infrastructure project, energy and commodity fi nance.

Clients – corporates, fi nancial institutions and investors – are at the heart of BNP Paribas CIB’s organisation. Coverage

executives are focused on delivering the best mix of services in support of their clients’ strategies, calling on specialists

in derivatives, capital markets and specialised fi nance around the globe to deliver world class bespoke and innovative

solutions.

In 2007, BNP Paribas CIB delivered exceptional results and was successful in weathering the credit liquidity squeeze

of the second half of the year through a diversified and client-centric business model which showed resilience

and sustainability compared to most of its competitors. Through constant innovation and the drive, commitment

and excellence of its teams, BNP Paribas CIB gained increasing industry recognition in 2007 with a fl urry of awards

for its capital markets and fi nancing businesses, as well as for its Corporate Finance Division in France and in Asia.

BNP Paribas CIB’s focus on emerging markets and Asia paid off with the growth of its market share and signifi cant deals

across the business lines in these regions of the world. In 2008, BNP Paribas CIB will pursue this international growth

strategy and continue to build on strong fundamentals: a robust business model with a good geographic, product and

client mix, strong franchises in capital markets and specialised fi nance; cutting edge professionals focused on delivering

performance and innovation.

BNP Paribas, London


Servicing our clients

BNP Paribas CIB has made client relations the cornerstone of its strategy,

with the primary aims of:

developing long-term relationships with its clients;

meeting all their needs by making available the Bank’s entire product range

and offering:

- a single client interface,

- coordinated access to the product specialists in all of the Group’s business lines,

- the ability to advise on and structure global, innovative solutions adapted

to the client’s specifi c requirements.

To achieve these aims some 1,000 staff – relationship managers and credit

analysts – have been tasked with serving:

6,300 corporate clients:

- major corporations,

- medium-sized businesses with high development potential;

800 fi nancial institutions:

- general and specialised banks (public or private),

- insurance companies, mutual health insurers, personal risk protection

providers,

- pension funds,

- fund managers,

- central banks and supranational entities;

65 investment funds focused primarily on the private equity sector,

sovereign funds.

These resources are deployed in all of the regions of the world where

BNP Paribas operates, particularly:

France, Italy and western European countries, which today represent

BNP Paribas’ core domestic market;

central and eastern Europe, identified by the Bank as a high potential

development zone;

the developed markets of North America, Japan and Australia;

markets targeted for their high growth and business potential, particularly

continental Asia, the Middle East – where the Bank has a deep footprint

in most countries – and Latin America.

BNP Paribas CIB is also committed to reinforcing its resources in fi ve highgrowth

countries/zones in order to better serve its clients: China, India, Russia,

Latin America and the Middle East.

BNP Paribas Annual Report 2007 /////// Corporate & Investment Banking

26_27


2007: expanding in Europe

and in emerging markets

In France, BNP Paribas CIB once again confi rmed its position as the leading

partner of large corporates and fi nancial institutions, thanks to the in-the-fi eld

effectiveness of its client coverage teams and their coordinated action with

product teams. This successful strategy enabled it to win major advisory

mandates and execute signifi cant, high value-added transactions in capital

markets, equity derivatives and structured fi nancing.

In Italy, the bolstering of coverage resources and the working in tandem

with BNL bc were rewarded by a substantial increase in fi nancing and capital

market transactions.

In Europe, BNP Paribas CIB overhauled its coverage of fi nancial institutions, a

key client segment slated for strong development.

Geographic coverage was enhanced in Scandinavia by opening a representation

office in Stockholm, and in central and eastern Europe by reinforcing

the expertise of corporate coverage teams.

In Asia, the Middle East and North America, BNP Paribas CIB extended

its client coverage by building up local teams dedicated to fi nancial institutions

and to the energy and commodities sector.

In the Middle East, the Group’s islamic bank also strongly expanded its

activities in 2007.

The close collaboration and combined contribution of BNP Paribas’ major

businesses (Fixed Income, Equity Derivatives, Corporate Finance, Structured

Financing and Asset Management and Services) and coverage teams resulted

in innovative, high value-added transactions in each of these geographic

areas.


Advisory

and Capital Markets

Equities and Derivatives

leadership and innovation

BNP Paribas CIB’s Equities & Derivatives business line encompasses research, structuring, trading and sales

of equities, equity derivatives, indices and funds. With some one thousand front offi ce staff based across fi ve

core platforms, the business line is active on both the primary and secondary markets.

Equities & Derivatives solutions address the various needs of fi nancial institutions, hedge funds as well as

corporate and retail clients in over 60 countries worldwide. With a strong heritage in structured products, a

product line which continues to grow, BNP Paribas, over the last few years, has also developed a comprehensive

range of fl ow product solutions addressing fi nancing, leveraging, hedging and market access needs.

BNP Paribas Annual Report 2007 /////// Corporate & Investment Banking

BNP Paribas CIB has developed a global leadership in the equity derivatives

industry by holding some of the largest trading positions and market

shares worldwide as well as always differentiating itself through a capacity

to innovate. Thanks to in-house quantitative skills for advanced product

design and the signifi cant resources dedicated to new product strategies,

Equities & Derivatives (EQD) has developed a solid reputation for innovation,

able to deliver the most appropriate tailor-made solutions to fi t the specifi c

needs of clients in all market climates.

2007: continued growth of the

Equities & Derivatives business line

Equities & Derivatives experienced signifi cant growth during 2007, once again

confi rming BNP Paribas CIB’s global leadership in this industry.

The equity derivatives business received more industry awards than ever

before:

“Structured Products House of the Year” from Risk magazine;

“Derivatives House of the Year, Asia-ex Japan” from AsiaRisk magazine;

“Deal of the Year, Asia” from AsiaRisk magazine;

“Structured Products House of the Year” from Euromoney magazine;

“Equity Derivatives House of the Year” from Structured Products magazine;

“Structurer of the Year, North America” from Structured Products magazine;

“Equity Derivatives House of the Year” from Futures and Options World

magazine;

“Equity Derivatives House of the Year, Americas” from Global Finance

magazine.

28_29


Equities & Derivatives continued to grow during 2007,

particularly in the fi rst half of the year. The market turbulence

during the second half had a limited impact and EQD

emerged from the crisis better than other counterparties,

clearly outperforming most of its competitors. This was

largely due to the diversity of EQD’s business lines

and regions of coverage.

Key developments for

Equities & Derivatives

during 2007 include

Continued growth of the fl ow platform across all

continents, in particular among the hedge fund client

base. Increased market share in options and delta-1

markets as well as in complex fl ows where EQD is able

to recycle signifi cant risks generated by large structured

product positions.

Signifi cant growth of the Private Banking client

segment for structured products businesses

worldwide, particularly in Asia. Increasing awareness

among Private Banking clients that the returns and

pay-offs generated by structured products cannot be

replicated by other fi nancial instruments.

BNP Paribas, Paris

Boom in Asian business highlighted by the successful

development of a comprehensive suite of complex fl ow

products for hedge funds in Asia. The Asian market

in general experienced rapid growth during 2007;

nonetheless, BNP Paribas CIB gained signifi cant Asian

market share in Equities & Derivatives, completing major

structured products transactions and making strong

headway in the warrants market. It thus positioned itself

as a true leader in this region.

Increased activity for the Strategic Equity business

across all regions, with a continued push in mature

markets and key deals and successes in emerging

regions. This move refl ects the entire business line’s

focus on and expansion into emerging markets.

Signifi cant resources dedicated to the search for new

underlyings, which provide clients with engines for

growth and return. For example, Private Equity funds

have served as an underlying for a structured product

used by Private Banking clients.

Lastly, the year was marked by solid growth in the

number of clients, registered across all EQD products

and regions.


Fixed Income

amongst the global leaders

Fixed Income’s product expertise and distribution capabilities have positioned BNP Paribas CIB among the Top 3

Fixed Income players in Europe and Asia-Pacifi c, with strong franchises in Japan, the Americas and a number

of emerging markets.

Taking advantage of both the size of its balance sheet and its strength and quality, as witnessed by the AA+

long term credit rating given by S&P in July 2007, the Bank has built a comprehensive fi xed income offering

with a client-driven approach that is backed up by strong legal, IT and operations expertise.

BNP Paribas, Singapore

BNP Paribas Annual Report 2007 /////// Corporate & Investment Banking

Fixed Income’s client-focused approach to research, sales, trading, origination

and distribution allows it to develop sophisticated solutions for a global client

franchise in the fi elds of interest rates, credit and foreign exchange.

BNP Paribas CIB is a recognised leader in the global interest rates and credit

derivatives markets, and has a growing franchise in global forex, especially

in options.

The Group’s broad range of fi xed income products is delivered through

an accomplished sales and marketing platform. Fixed Income’s broad range

of research products and services underpins its client-focused approach, with

research analysts available for one-on-one client support, and an extensive

array of research notes and reports that are available through a variety of

channels, including the Global Markets web portal. The Bank’s research

methods are underpinned by pioneering quantitative techniques delivered

by a group of world-class experts.

2007: continued investments

in derivatives

In line with BNP Paribas’ group-wide strategy, Fixed Income has continued

to invest in its credit, interest rates, foreign exchange and hybrid derivatives

platforms, in key emerging markets such as Russia, central and eastern

Europe and the Middle East, and in fast-growing client segments such as

hedge funds and pension funds.

This global network allows Fixed Income to provide clients with a complete

range of tailor-made services on a global scale across a broad range of markets

and currencies. With headquarters in London, fi ve other trading fl oors in

Hong Kong, New York, Paris, Singapore and Tokyo, and additional regional

offi ces throughout Europe, the Americas, the Middle East and Asia-Pacifi c,

Fixed Income employs more than 1,700 professionals globally.

30_31


2007: weathering the credit market crisis

and gaining industry recognition

After a record year in 2006 and a strong start in 2007,

Fixed Income emerged in relatively good shape from the

liquidity crisis and credit crunch that hit global markets in

the second half of 2007.

BNP Paribas CIB’s Fixed Income division has gained

increasing industry recognition in 2007 for its excellence

across asset classes. The division has not only consolidated

and improved its rankings across the full range of activities

and regions, but also broken new ground in several

areas, as demonstrated by a number of prestigious prices

awarded by the leading industry publications.

Awards include:

For the fi rst time, BNP Paribas won Risk magazine’s

“Structured Products House of the Year” award for

its excellence in structured rates, credit, infl ation and

equity.

For the second consecutive year, BNP Paribas won

Euromoney magazine’s “Best Structured Products

House” award in recognition of its excellence across all

asset classes (2006 and 2007).

Breaking all previous records, BNP Paribas won three

awards from Structured Products magazine in Europe,

including “Interest Rates House of the Year” (for the

second consecutive year) and for the fi rst time “Credit

House of the Year” (2007).

Key transactions in 2007

BNP Paribas arranged

an innovative

EUR 200 million

(20-year non-put 5-year

privately-placed bond) –

the fi rst callable/puttable

bond with multiple resets –

for Hera SpA.

BNP Paribas priced

and closed “ZOO HF 3 Plc”,

a EUR 150 million

(USD 197 million)

transaction, managed by

P&G Alternative Investments,

the fi rst collateralised fund

BNP Paribas broke new ground in Asia-Pacifi c in 2007,

winning AsiaRisk’s “Derivatives House of the Year”

award for the fi rst time and the “Credit Derivatives House

of the Year” award for the second time in three years.

League table positions and industry rankings

The Group has the 14th-largest share of the total bond

underwriting market, all currencies included. It is 3rdranked

for all corporate issues in euros, 4th for all covered

bonds in euros, 5th for all SAS (sovereign, agency

and supranational) bonds and 5th for all bonds in euros.

(source: Thomson IFR 2007).

In 2007, BNP Paribas CIB:

ranked no. 2 for CMS spread options in euros, no. 3 for

CMS spread options in US dollars and no. 3 for infl ation

caps/fl oors in US dollars in the exotic interest rate products

category (source: Risk institutional investor enduser

rankings 2007);

was voted best overall provider of FX services by fi nancial

institutions in Asia Pacifi c for the second consecutive

year (source: Asiamoney FX Poll 2006 and 2007);

ranked no. 3 overall in Italy for derivatives dealers, no. 1

for structured products and no. 1 for risk management

advisory services (source: RiskItalia Derivatives

Poll 2007);

was voted no. 2 by brokers and dealers for structured

credit products overall for two consecutive years and

no. 4 for exotic interest rates (source: Risk’s inter-dealer

rankings 2007).

obligation to be managed

by an Italian fi nancial

institution and one

of very few in Europe.

BNP Paribas’ restructuring

of AMP Capital Investors

Future Directions Total

Return Fund won AsiaRisk’s

“Deal of the Year” award.

BNP Paribas arranged

“Stellar”, a 5/7/10-year

synthetic collateralised

debt obligation managed

by UOB Asset Management.

Stellar was the fi rst

transaction with an Asian

asset manager and,

with more than USD

165 million in notes issued,

it proved to be very

successful. Notes were

issued in US dollars,

Singapore dollars

and Japanese yens

and distributed in Singapore,

Japan, Indonesia

and the Philippines.


Corporate Finance

Corporate Finance offers advisory services for mergers and acquisitions and primary equity capital market

transactions. The M&A teams advise both buyers and targets and also offer advice on other strategic fi nancial

issues, such as privatisations. Primary capital market services include fl otations, equity issues, secondary

issue placements, and convertible/exchangeable bond issues.

Corporate Finance has implemented a matrix organisation designed to give clients access to the best combination

of specialists in each product, industry and geographical area, while optimising resource management.

Corporate Finance employs some 400 professionals located throughout its worldwide network. Focused fi rst

and foremost on Europe, it is also present in North and South America and enjoys strong visibility in Asia (with

more than 100 professionals) and in emerging countries.

Ranked no. 1 in France (source: Thomson Financial), BNP Paribas is among the leading banks in Europe

advising on mergers and acquisitions (ranked 10th in Europe according to Thomson based on transaction

volumes announced in 2007). The Dealogic Equityware/Thomson ranking placed the Bank among the

12 leading institutions for primary equity business in Europe.

Developing franchises

in Europe and Asia

2007: a record year in Mergers and Acquisitions

After the record results posted in 2006, the M&A market in Europe once

again reported a sharp increase in volumes (up 43% in terms of announced

transactions according to Thomson Financial).

In this fast-moving environment, BNP Paribas CIB reported robust activity

for its Corporate Finance business, strengthening its undisputed leadership

on the French market and stepping up its European expansion, particularly

by assisting clients in cross-border transactions:

in vibrant sectors such as:

- energy: Endesa/Enel-Acciona,

- consumer goods: Danone/Numico,

- real estate: Foncière des Régions/Beni Stabili, Accor/Moor Park Real

Estate Fund,

- insurance: Allianz’s acquisition of minority interests in AGF (the largest

transaction in the European insurance sector), Scor/Converium.

and through an array of other major deals: Air Liquide/Lurgi AG, Schneider/

American Power Corporation, Geodis/TFM (TNT Freight Management),

Tubos Reunidos/Condesa.

BNP Paribas CIB was also very active:

with private equity funds in the fi rst half of the year, notably on transactions

between: PAI partners/Lafarge Roofi ng Division, PAI partners/Saur, TDF/

Texas Pacifi c Group/Charterhouse, Apax Partners/Trader Media Group and

Dubai International Capital/Mauser Group.

on emerging markets, in particular:

- in central and eastern Europe: the privatisation of the Serbian insurance

company DDOR, HTCC’s acquisition of Invitel in Hungary, and the

reorganisation of the hydropower group RusHydro;

- in Latin America: Colinversiones’ acquisition of a power plant in Columbia

and the Mexican government agency IPAB’s sale of its AeroMexico

holdings.

BNP Paribas Annual Report 2007 /////// Corporate & Investment Banking

BNP Paribas, Paris

BNP Paribas, Madrid

32_33


Lastly, BNP Paribas CIB participated in several major

transactions announced in the second half of 2007:

Lafarge’s acquisition of Orascom Cement;

BHP Billiton’s planned acquisition of Rio Tinto.

The Corporate Finance team is also involved in the GDF/

Suez transaction, which is set to be France’s largest-ever

merger.

In total, the Bank advised on nearly 150 transactions in 2007.

½ European primary equity capital markets:

a new mix of transactions

IPO market volumes in Europe held fi rm in 2007 and were

characterised by:

a predominance of “accelerated” book buildings (about

EUR 59 billion). BNP Paribas managed book

buildings for EDF (EUR 3.7 billion) and Sanofi Aventis

(EUR 1.5 billion);

an upturn in long-term placements (about EUR 15 billion).

BNP Paribas notably managed the EUR 1.4 billion sale

of HeidelbergCement’s stake in Vicat;

growth in the volume of convertible bond issues (about

EUR 25 billion). In particular, BNP Paribas managed

convertible bond issues for Michelin (EUR 700 million)

and Pargesa (CHF 920 million);

a slight decline in initial public offerings (about

EUR 51 billion). BNP Paribas managed the fl otations

of Bureau Veritas (EUR 1.2 billion), Rexel (EUR 1 billion)

in France, and Il Sole 24 Ore (EUR 232 million) in Italy;

BNP Paribas, New York

stabilisation of share issues with preferential subscription

rights (about EUR 43 billion). BNP Paribas managed

capital increases for Schneider Electric (EUR 979 million)

in France, Merck (EUR 2.1 billion) in Germany and GBL

(EUR 1.2 billion) in Belgium.

½ Continued expansion in Asia

BNP Paribas CIB once again reported strong growth in

Asia, doubling its revenues with:

advisory mandates in Japan (Tepco), South Korea

(S-Oil), China (Zijin Consortium), Singapore (Pan United)

and Malaysia (RHB Capital);

robust development on primary markets, spanning all

types of products. BNP Paribas managed in particular:

- the convertible bond issues of Man Industries in India,

Red Dragon Group in Singapore, Neurotech Pharma

in South Korea and Truba’s exchangeable bond issue

in Indonesia;

- seven initial public offerings in Hong Kong, of which

two for subsidiaries of the CITIC group (CITIC 1616

and Dah Chong Hong), as well as fl otations in Vietnam

(VMEP), Singapore (Lippo – Mapletree REIT), and

China (Pacifi c Online);

- share issues for Mediacorp in Singapore and Lutronic

Corp in South Korea.

In 2007, BNP Paribas was named “Rising Star Equity House

– Equity Capital Markets” by The Assets magazine.

BNP Paribas,

a prominent player on

the energy market in 2007

Against the backdrop

of the restructuring

of the European energy

market, BNP Paribas

was very active in 2007,

participating in several

transactions, including:

Acciona and Enel’s

acquisition of Endesa.

BNP Paribas advised

Endesa in connection

with three successive

purchase offers from Gas

Natural, E.On and Acciona/

Enel. Acquired

for EUR 42.5 billion

(ranking the transaction

within the Top 5

on the European market),

Endesa boosted Enel’s

position in Spain

and France and increased

Acciona’s portfolio

of renewable energies;

France’s largest-ever

merger: Gaz de France

and Suez, with BNP Paribas

acting as advisor to Suez;

the largest acquisition

in the wind power industry

carried out in France:

advised by BNP Paribas,

Suez acquired a majority

stake in Compagnie

du Vent;

the entry of a major

energy supplier

into the French market:

BNP Paribas advised

on ENI’s acquisition

of a controlling interest

in Altergaz.


Financing businesses

Specialised Finance

a global franchise in pole position

The Specialised Finance teams offer a comprehensive range of dedicated fi nancing solutions for the energy and

commodities sectors, as well as for transport, infrastructure and capital goods. The team’s offerings are typically

centred on made-to-measure solutions, covering short- to very long-term fi nancing. These include:

Dedicated energy and commodities fi nancing, encompassing all of the

requirements of customers in this segment, from exploration and production

through to trading and refi ning. The Specialised Finance team provides

cash fl ow fi nancing as well as both structured and project-specifi c fi nancing

products.

Asset fi nancing, which comprises a wide variety of solutions such as import/

export fi nancing, infrastructure fi nancing, aircraft and maritime fi nancing, as

well as tax effi cient and structured leasing products.

With offi ces in more than 40 countries, the specialised fi nance teams have

a strong presence in both emerging markets and the industrialised world.

BNP Paribas CIB confi rms

its global leadership

In 2007, BNP Paribas CIB confi rmed its leading global position both in energy

and commodities fi nancing, where it has historically been a key player, and

in asset fi nancing, where the Group is no. 1 worldwide in project and export

fi nancing.

2007 worldwide rankings & awards

No. 1 “Global Mandated Lead Arranger for Export Credit Agency Backed

Transactions” (Dealogic).

No. 1 “Global Mandated Lead Arranger for Project Finance” (Thomson).

“Aircraft Finance Innovator of the Year and Aircraft Leasing Innovator of the

Year” (Jane’s Transport Finance).

“Best Structured Commodity Bank” (Trade Finance Magazine).

“Best Trade Bank in Oil and Energy” and “Most Innovative Bank in Trade”

(Trade & Forfaiting Review).

“Best Trade Finance Bank worldwide” (Global Finance).

BNP Paribas CIB also won the “Best Innovative Deal in Shipping” award from

Lloyd’s Shipping Economist for the deal relating to Compania Sud Americana

de Vapores (CSAV).

BNP Paribas Annual Report 2007 /////// Corporate & Investment Banking

BNP Paribas, Mumbai

BNP Paribas, Madrid

34_35


BNP Paribas, Singapore

Energy and Commodities

New market players, additional needs

½ More hybrid solutions

In the energy and commodities sector, the emergence

of new market players and a wave of major business linkups

have brought about a shift in client needs towards

hybrid, structured loans. In both industrialised and emerging

countries, BNP Paribas CIB actively partnered with

its clients to move in this new direction.

½ A new record year

Against a backdrop of intense competition and sharply

contrasting commodity price movements – a fall in the fi rst

half of the year was followed by a surge to record levels

BNP Paribas was able to strengthen its leading global

position in this sector. The fi nancing of commodity fl ows

was on par with the record levels of 2006, with a strong

rise in inventory fi nancing and an expanding client base.

½ A broader, more sophisticated range

of dedicated products

Structured fi nancing of energy and commodities, which

now encompasses all structured products in this sector

(including project fi nancing and pre-export fi nancing),

gained ground in the United States, Russia and far eastern

Europe, thanks in particular to acquisition fi nancing.

Specifi c measures were undertaken in 2007 to offer all

bank clients active in the commodities sector a broader,

more sophisticated range of dedicated products covering

derivatives, capital markets and M&A advisory services.

Asset Finance

Innovation and global expansion

½ Sharp rise in aircraft and marine fi nancing

2007 was a banner year for asset fi nancing with a sharp

rise in net income from aircraft and marine fi nancing. The

marine fi nancing teams successfully launched operations

in China and India and strengthened their position

thanks to container ship fi nancing transactions. Despite

heightened competition, the aircraft fi nancing teams

substantially expanded their Latin American activities and

boosted transaction volumes with operational lessors.

½ Leader on the export market from Asia

From an already strong business base, the highly

experienced export financing teams amply confirmed

their global leadership. This front-ranking position is

particularly evident on the Asian export market (China,

Korea and Japan).

½ Major advances in infrastructure project fi nancing

in Europe

The infrastructure teams turned in a sparkling performance,

making major advances in Europe and taking advantage of

the opportunities offered by acquisition transactions.

½ Development in Italy

Global Trade Services’ project financing and marine

fi nancing business expanded signifi cantly in Italy on the

back of the BNL acquisition.

Financing sustainable

development

Both in the energy

and commodities sector

and asset fi nancing,

BNP Paribas CIB continued

to innovate, garnering

widespread recognition

from the specialised

press in the process.

Special efforts were made

in 2007 to facilitate the

fi nancing of renewable

energy and sustainable

development. As a

result, BNP Paribas CIB

was appointed as advisor

for the fi nancing of

the United States’ largest

solar power plant,

one of its teams’ areas

of expertise. In addition,

the Group was the mandated

arranger of fi nancing

for Namibia’s Ministry

of Health and Social

Services. This transaction

is the fi rst Finnish

Concessional Loan

ever carried out in Namibia

and the fi rst in Africa

in ten years.


CASH MANAGEMENT

a leading commercial offering

Within BNP Paribas CIB, the Cash Management business provides

international companies with an extensive array of global cash

management and liquidity solutions. These services developed

in close cooperation with the French Retail Banking’s Cash

Management Department are based on state of the art technologies

and on a wide geographical coverage encompassing Europe, Asia

and the Americas.

In 2007, The Bank’s offering continued to evolve to remain

at the forefront of the latest market developments such as Payment

Factory services and the launch in January 2008 of the Single Euro

Payment Area (SEPA).

The quality of this international offering is demonstrated

by Euromoney magazine’s rankings of October 2007:

no. 3 for cross-border cash pooling;

no. 3 for global liquidity capabilities;

no. 5 in Europe for international cash management services;

no. 8 at global level.

In 2007, supported by a dedicated sales force organised

around a central team as well as experienced professionals

in some 30 countries, the Cash Management business continued

to develop its market penetration. BNP Paribas has been chosen

by numerous clients from all geographic areas thus strengthening

client relationships and generating multi-year recurring revenues.

BNP Paribas, Bahrain

BNP Paribas Annual Report 2007 /////// Corporate & Investment Banking

36_37


Structured Finance

bridging the gap between lending and capital markets

At the crossroads of lending and capital markets, the Structured Finance division of BNP Paribas CIB designs

tailor-made fi nancings for clients on a worldwide level. Structured Finance (SF) professionals bring their

expertise to corporates, fi nancial institutions, private equity sponsors and local government authorities.

Whether for an acquisition, a structured or a plain vanilla fi nancing, Structured Finance provides custommade

solutions with the latest fi nancial architecture and the best placement on the appropriate debt markets.

Structured Finance manages the full spectrum from origination and structuring to underwriting and distribution

on the loan syndication markets.

Structured Finance operates around the world through three main platforms – Paris/London, New York and

Hong Kong, with teams present in 18 locations, bringing to the local level the talents and specifi c skills of our

experts to develop long-term client and investor relationships.

Awards & rankings:

“Best Arranger

of western European

Loans”, Euroweek Poll,

Jan. 2008

No. 2 “EMEA Bookrunner

(by volume) for 2007”

Thomson Financial

& Dealogic, Jan. 2008

“Overall Asia Pacifi c

Deal of the Year”

for the Wesfarmers deal,

EuroWeek Asia,

Jan. 2008

“European Telecom Loan

Bank of the Year 2007”,

Telecom Finance,

Jan. 2008

“European Leveraged

Loan of the Year”

for the TdF transaction

(EUR 3.97 billion),

IFR Awards 2007

“Best Russian Loan”

for the Norilsk Nickel loan

(USD 6 billion),

Euroweek Poll, Jan. 2008

No. 2 “Bookrunner

for 2007” for Singapore

syndicated loans,

Thomson Financial & IFR.

2007: strong corporate activity despite

the impact of the summer fi nancial crisis

on leveraged fi nance

Structured Finance’s booming activity in the fi rst half of the year was balanced out

in the year’s second half, when leveraged fi nance was impacted by the summer’s

market infl ection. Corporate activity was strong throughout the year.

In the Americas, Structured Finance managed to close landmark deals

such as Baldor for the acquisition of Reliance Electric Company, Geo’s for

the acquisition of Centracore Property Trust, and Schering Plough’s for the

acquisition of Organon BioSciences NV, a wholly owned subsidiary of Akzo

Nobel. CIB reinforced its cooperation with Bank of the West which led to

the structuring and distribution for Select Remedy, one of the ten largest

temporary staffi ng companies in the United States.

On the syndication side, 82 transactions were completed in 2007, compared

to 73 in 2006. Lastly, despite the severely adverse debt market environment

prevailing from August onward, the Group was successful in proactively

managing LBO underwriting commitments, repricing risks and eventually

reducing exposure substantially.

In Asia Pacifi c, BNP Paribas’ footprint continued to gain recognition throughout

the region, enabling the Group to be the highest-ranked European bank in

the syndicated loan bookrunner league table for the Asia Pacifi c region.

The Group’s activities spanned the entire region, from the more developed,

mature economies to emerging growth markets:

In Australia, the Bank coordinated the biggest ever syndicated loan of AUD

10 billion to back Wesfarmers’ acquisition of Coles, the largest take-over in

Australian history.

In Singapore, the Bank backed the privatisation of the largest rice cracker

manufacturer in Asia, Want Want Holdings. On the emerging market front,

the Bank consistently ranked among the fi ve most active arrangers of loans

in China, underscoring its strong involvement in the Asia Pacifi c region’s

fastest growing economy. Its fi nancing transactions concerned entities ranging

from the state-owned bank China Exim to the private sector company

Suning Appliance.

In India, BNP Paribas supported the growth aspirations of its global client,

Vodafone, in a JPY 59.7 billion sole-led transaction for Vodafone Essar as

well as domestic corporations like Reliance Industries (to fi nance the capital

expenditure requirements for Reliances’ oil and gas business) and fi nancial

institutions like ICICI Bank (USD 1.5 billion for general corporate purposes).


In Vietnam, the Bank arranged fi nancing for PetroVietnam

to develop and construct the Nhon Trach 1 power plant,

confi rming its role as an active player in this fast growing

market.

In Europe, the Bank’s strength in arranging and bookrunning

syndicated loans is highlighted by its leading

position in the EMEA region in all bookrunner league

tables. BNP Paribas’ dominance in this sector refl ects its

multi-site origination and distribution platform and equivalent

diversifi cation in terms of transaction type – high

grade, transactions related to such areas as energy, commodities,

projects and exports, and structured transactions

(including leveraged fi nancing and the fi nancing of

the media/telecommunications sector).

2007 was a successful year for corporate acquisition

fi nance teams with a signifi cant increase in

the number of mandates. The current crisis has not

affected the level of activity and the deal fl ow remained

high even after August, although the market environment

impacted deal pricings and structures and tightened

liquidity. Among the deals underscoring CIB’s

growing pan-European presence and capacity were

the mandates obtained from: Danone for the acquisition

of Numico (the Netherlands); Lafarge (France) for

the acquisition of Orascom Cement (Egypt); Vodafone/

Essar (UK/India) for the monetisation of a put option on

Vodafone; Barilla (Italy) for restructuring Group indebtedness;

Norilsk Nickel for the acquisition of Lion Ore

and X5 (Russia) to fi nance future growth. The activity in

eastern Europe picked up signifi cantly. In line with the

joint actions previously undertaken, Structured Finance

worked with BNL’s Corporate Group to develop a

marketing approach targeting small/midcap clients.

These joint actions have led to increased knowledge

of Structured Finance products among BNL coverage

teams and open the way for a promising pipeline

of business opportunities.

BNP Paribas, New York

BNP Paribas Annual Report 2007 /////// Corporate & Investment Banking

In a very active market, the Leveraged Finance team

closed a large number of LBO deals in all European

jurisdictions, the most signifi cant being the EUR 2 billion

fi nancing of PAI partners’ acquisition of a majority stake

in Lafarge Roofi ng, the add-on facility for Dutch waste

management company AVR to cover its acquisition

of Van Gansewinkel and the fi nancing of CDC Capital

Investissement’s LBO and taking-private of Quick.

The year was very dynamic as regards European fi nancing

of media and telecommunications operators.

BNP Paribas extended its geographic reach into the

Middle East and eastern Europe and consolidated its

leading position. In telecoms, it was awarded bookrunning

mandates for fi nancing TPG’s LBO of TDF,

refi nancing Ypso Numericable, fi nancing Swisscom’s

acquisition of Fastweb, and in Turkey for Otas’ fi nancing

with proceeds applied toward the repayment of

a seller’s note issued in favour of the Turkish state. In

the media sector, BNP Paribas CIB acted as bookrunner

for the LBO of Trader Media Group by Apax and

the Guardian Media Group, and the LBO of the Dutch

publisher SDU by Allianz Capital and ABN PE. In emerging

markets, the Bank also acted as bookrunner for

the USD 2.5 billion fi nancing of MTC for its acquisition of

the third GSM licence in Saudi Arabia and the facility for

the acquisition of Watanyia (Kuweit) by QTel (Qatar).

2007 was also a dynamic year for real estate fi nancing

with a record level of investment in Europe.

BNP Paribas CIB maintained its strong position in

France in real estate bank fi nancing transactions and

enjoyed signifi cant growth in Italy.

38_39


BNP Paribas, Lyon


French retail

banking

40_41


French Retail Banking

French Retail Banking (FRB) has a client base made up of more than 6 million individual and private banking clients,

500,000 entrepreneurs and small business clients, and 22,000 corporate and institutional clients (numbers based on

the new commercial structure). The division offers a comprehensive line-up of products and services, ranging from

current account services to the most complex fi nancial engineering services in the areas of corporate fi nancing and

asset management.

The network operated by the French Retail Banking Division has been reinforced with a view to enhancing local coverage and

client service. As at 31 December 2007, it consisted of 2,200 branches, of which 900 had been updated with the new “Welcome

& Services” concept, and close to 4,900 cash dispensers. As such, the network is more compatible with a multi-channel organisational

structure. The division focuses on regions with high economic potential, and enjoys a 15% share of the greater Paris

market (source: BNP Paribas FRB market research, market share based on number of branches). It also has a strong presence

in the most attractive segments of the personal banking market – 22% of households with net annual revenues in excess of

EUR 82,000 have their main bank account with BNP Paribas (source: Ipsos) – and a leading position in the corporate market.

The French Retail Banking Division employs close to 32,000 people working in the BNP Paribas domestic branch

network, Banque de Bretagne, BNP Paribas Factor, BNP Paribas Développement, a provider of growth capital, and

Protection 24, a telesurveillance fi rm.

In order to effectively respond to client expectations, French Retail Banking has reorganised its sales structure on the

basis of network segmentation. The division is now made up of branches serving individuals and small businesses,

Private Banking Centres, and Business Centres, all supported by a Client Relations Centre (CRC) and back offi ces in

charge of after-sales operations.

In parallel, the division has continued to actively expand the personal banking business, drawing on the multi-channel

structure (branch, telephone and online banking) that was rolled out from 2002. The underlying aim of this system is

to offer clients the highest standard of service and to step up the role of in-branch client advisers. The Client Relations

Centre’s three platforms in Paris, Orleans and Lille deal with calls made to the branches and process client e-mails.

To extend this service, a dedicated line was set up in 2006 for Private Banking clients. A client relationship centre for

entrepreneurs and small business clients was opened in the Paris region in 2006, before being set up nationwide.

The new workstations operated by the client advisers are geared to managing client relations within a multi-channel framework.

As such, they represent the very hub of the system, whose effectiveness has been clearly proved after several years of use.

French Retail Banking also has the largest network of Private Banking Centres, with 222 centres across France that

ensure extensive local coverage.

The new business approach adopted for corporate clients led to the emergence at the end of 2005 of a structure that

is unique in the French banking landscape. This new organisation is based on 24 Business Centres located throughout

the whole of France, as well as a professional assistance service – Service Assistance Enterprise (SAE) – and Cash

Customer Services (CCS).

Finally, the division is reengineering its back offi ces into Production and Sales Support Branches (PSSBs). Specialised by

type of transaction, they span the whole of France and have fully integrated information. At the end of 2007, there were

83 PSSBs, combined into 12 Production and Sales Support Groups.

BNP Paribas, Marseille


Individual clients

A record year for new accounts

2007 goes down as a record year for client acquisitions, with more than

530,000 individual demand accounts opened, an increase of some 26%

on 2006. This strong momentum is confi rmed by the net growth in the number

of individual accounts, which reported a signifi cant increase for the third year

running (230,000 versus 170,000 in 2006 and 155,000 in 2005).

This performance refl ects the targeted client acquisition strategy implemented

several years ago with the goal of renewing and developing the individual client

business:

the network confi rmed its focus on proximity by opening 34 new branches,

bringing the total to 140 new branches in four years in sectors that offer

strong development potential. The 104 point-of-sale relocations carried out

over the same period also attest to the mobility of this strategy.

the very active campaign targeting the younger population – clients’

children, students and young working people (see inset) – also paid off.

A remarkable 328,000 client relationships were established with under-30s

in 2007.

the national client sponsorship campaign led to 21,000 new account

openings, which refl ect the satisfaction of our clients and their willingness

to recommend us.

The network’s client advisors also strongly promoted Private Banking’s

services. As a result, they guided 12,800 clients towards Wealth

Management Advisors. At the end of 2007, 110,000 households, representing

more than EUR 60 billion in assets under management, were benefi ting from

Private Banking services in France.

A dynamic policy

focusing on the young

Innovative offerings adapted

to every age group:

140,000 BNP Paribas

Multiplacement Avenir

life insurance contracts

have been set up

for clients’ children since

the product was launched

at the end of 2006;

successful assistance

to students with their

everyday challenges

and in their relations

with the Bank: Jeun’Appart

housing deposits,

bank balance consultation

via SMS, free overdraft

facilities;

new global approach to

young people starting work,

together with BNP Paribas

Santé, a complementary

healthcare package

adapted to their budget.

Major partnership

with student mutual

insurance network:

a common goal of providing

students with access

to banking services

and healthcare coverage;

more than 11,000 new

clients in six months.

A highly original marketing

and communication

campaign:

shock comics Erik

and Ramzy bring the Bank

closer to the under-30s

through a multimedia

campaign delivered

largely via mobile phone

and internet;

BNP Paribas Annual Report 2007 /////// French Retail Banking

updating of the under-30s

space on bnpparibas.net

to give it a clearer

identity and to showcase

the offering;

strengthened online

appeal with a chat

room, music and game

downloads, etc.

Sunday Start: through

its strong association

with the tennis world,

BNP Paribas is inviting

10,000 young people

to the Paris Masters

at Bercy sports stadium

in the French capital.

42_43


Client satisfaction, key to loyalty

Thanks to the continued development of the multi-channel

client contact system, Retail Banking improved the proactivity

of its commercial organisation by being close to

its clients at the right time and by being able to provide

personalised offerings. Over 25 million contact opportunities

were generated in 2007, a 25% increase on the

2006 level. In parallel to the strong increase in visits to

bnpparibas.net (1.4 million unique visitors per month,

up 43% on the previous year), the number of client

contacts made via the internet has risen by 31%

(compared to 2006).

The enhancement of the bank relationship led to a

substantial rise in client contacts and boosted the number

of in-branch interviews (11.5 million client contacts,

of which 7.2 million inside the branch):

programme to monitor new clients (see inset);

programme to provide ongoing assistance to young

clients – who are the most mobile and therefore the most

vulnerable – up through their fi rst years at work;

a more pro-active approach to clients whose main bank

is not BNP Paribas.

The investment mix aligned with the multi-channel

strategy gave clients a free choice of how they keep in

contact with the Bank:

proximity: since mid-2004, BNP Paribas has updated 902

branches with the new “Reception & Service” concept

(i.e. one branch per working day), created children’s’

Steps taken to improve

client satisfaction

To rapidly consolidate

relationships with new

clients, the welcome

programme has been

signifi cantly bolstered

so that at least four contacts

are made in the fi rst year

with a view to:

ensuring clients are

satisfi ed with the quality

of the services provided

by the Bank;

checking that clients

are aware of the various

methods available

for contacting the Bank

(through the branch,

telephone, internet, etc.);

marking the anniversary

of the client’s fi rst contact

as a key stage in a longterm

relationship.

The new “Savings Coach”

concept was launched

in early 2007 to help clients

establish their savings

targets. Branch network

fi nancial advisers

undertake to:

meet each client at least

three times a year;

create a savings plan

that responds to

their specifi c objectives;

pass on knowledge

in a clear and concise

manner;

play areas and provided close to 5,000 automatic cash

dispensers with increased account management capabilities;

83% of clients like the new branch organisation,

and 87% appreciated having standard banking services

accessible via cash dispensers;

distance: an updated version of the bnpparibas.net site

which is more modern, easier to use and better adapted

to clients’ daily needs with new functionalities, such as

the possibility of setting up permanent standing orders

and improved access for the partially sighted.

Additionally, high quality, personalised service remained

at the heart of the commercial strategy:

numerous diagnostic reviews focusing on client projects

and needs were made available throughout the network:

savings, protection, under-30s;

strong commitments were made to clients during the

“Savings Coach” campaign (see inset);

the Retail Banking business kept fully abreast of the

application of the MIF directive to be able to give savers

accurate information;

the BNP Paribas Business School (see inset) was created

with the goal of ensuring quality service by providing

advisers with better training.

Each of these developments has contributed to the continued

improvement in the annual barometer of client

satisfaction, with particularly strong progress in indicators

showing how clients rate their relationship with their adviser

and whether they would recommend BNP Paribas.

prove themselves

to be effi cient over

the long term.

With the Ecole

du Commerce (Business

School), Retail Banking

has substantially invested

in the training of client

advisers. Programmes

of 7 to 28 weeks,

depending on the future

role and experience

of the employee, alternating

between practical

experience in the branch,

and study. In 2007,

the school provided training

for 350 new employees.


Commercial momentum boosted by the continued renewal

of the offering

Retail Banking continued to enjoy strong momentum in payment methods:

the continued success of the innovative Terceo offering, which allows

clients to pay for card purchases in three instalments or within three months.

More than 500,000 clients have taken advantage of Terceo in the

18 months since it was launched;

with 660,000 Visa Premier and Infi nite cards distributed among its Retail

Banking clients, BNP Paribas has confi rmed its leadership at the top

end of the payment card market;

the introduction of the Carte Cadeau payment card in November 2007

(see inset).

Following the decision by the government to transform Codevi savings schemes

into Sustainable Development savings schemes, BNP Paribas became one of

the fi rst banks to offer reduced-rate loans, under the name of Energibio,

which allow clients to fi nance energy-saving projects in their primary or

secondary places of residence. Eight months after the launch, 2,000 applications

have been processed, representing a total of more than EUR 20 million.

A new offering to fi nance the exercising of stock options was also introduced

in the spring to provide for the development of this type of remuneration

offered to employees of large companies.

In savings, against a volatile fi nancial market backdrop, BNP Paribas stepped

up its policy of regularly launching new guaranteed return funds: excluding

Private Banking, more than EUR 2.2 billion were collected by the nine

innovative funds offered to clients in 2007 with varying durations, underlying

assets and strategies (see inset).

Impressive commercial success

The Retail Banking business (Private Banking included) once again turned

in very solid performances in investment savings despite a more demanding

environment than in 2006, particularly in the second half of the year. In contrast

to the situation seen by the majority of bancassurers, life insurance infl ows

continue to grow, and are approaching EUR 7.5 billion. The situation is also

positive for mutual funds and unit-linked life insurance contracts, with infl ows

reaching close to EUR 10 billion. These performances refl ect the strength of

the offering, the continued development of planned savings with more

than 430,000 new contracts, an increase of 13% compared to 2006,

and regular, increasingly personalised contact with clients.

As regards loan business, Retail Banking continued to support its clients’ projects:

strong activity in consumer loans, resulting in an 9 basis point gain in market

share in one year;

a 25% rise in the number of student loans granted;

a 9% increase in the mortgage portfolio with business remaining robust

despite less favourable market conditions than in 2006.

BNP Paribas Annual Report 2007 /////// French Retail Banking

Commercial momentum

boosted by innovation

The Carte Cadeau prepaid

and universal payment card

has proven very popular

with clients since its launch:

4 eye-catching designs

with a mirror effect,

and deluxe packaging

as an option;

more than 9,000 cards

were offered as gifts

in two months.

Guaranteed return

funds highlighted

by the fi nancial press

and popular among clients:

Conquistador,

Conquistador 5

and Conquistador 8,

which track equity market

growth in the eurozone,

have attracted

infl ows of more than

EUR 475 million;

Mambo, which targets

a 12% return in two years

or a strong share

of the average growth

registered by a basket

of 20 stocks over fi ve

years, has generated

infl ows of EUR 590 million.

44_45


Entrepreneurs and freelance

professionals

BNP Paribas supports

business creation

in association with

APCE and ADIE:

45,000 “Succeed in creating

your own business”

and “Succeed in acquiring

your own business” guides

were handed out in 2007

at trade fairs and in 2,200

BNP Paribas branches.

Compiled in partnership

with APCE (a governmentsponsored

business creation

agency), these guides help

to give those looking to set

up or acquire a business

a more professional

approach by teaching them

how to methodically prepare

their project and implement

it effectively.

Additionally, would-be

entrepreneurs can now

submit their projects

to BNP Paribas online

via www.apce.com.

An appointment is then

set up at a BNP Paribas

branch of their choice

within 48 hours.

Involved in the microfi nance

arena for many years

alongside ADIE (Association

for the Right to Economic

Initiative), BNP Paribas

helped fi nance more

than 1,700 projects in 2007

(up 18% compared to 2006),

for a total sum of close

to EUR 5 million.

The Bank continued to step up efforts to capture loan business in 2007.

The freelance professional activity recorded a net increase of nearly

12,500 current accounts in 2007 (up 3.6% over 12 months). The number of

active entrepreneur accounts grew by the same proportion.

These performances refl ect constant efforts to develop in this area, as well

as regional and national partnerships established with key players in

healthcare, franchises, craft industries and agriculture.

They also illustrate BNP Paribas’ strong commitment to supporting business

creation and acquisition and, more generally, providing the fi nancing

that helps to reinforce local economies:

through the 2007 edition of the campaign to attract entrepreneurs and freelance

professionals and close relations with ADIE and APCE (see inset), nearly

6,300 projects were examined in 2007 (up 45% versus 2006);

total equipment loans awarded to entrepreneurs and freelance professionals

in 2007 were up 4% by value on the 2006 level despite the uncertain environment

in the second half of the year;

Also on the rise, business creation and business acquisition fi nancing accounted

for 31% of the number of loans set up (up 1 point relative to 2006).

Client relationships at the heart of commercial strategy

In 2007, substantial investment went into improving client relationship management

and the pertinence of advice given to entrepreneurs and freelance

professionals.

The development of a business segment-orientated approach and

various analytical tools helped business client advisers to get a better understanding

of client needs.

The introduction of an effective client contact strategy based on preference

scores and personalised offerings also helped to boost the intensity,

proactiveness and relevance of our commercial approach:

- close to 1.3 million contact opportunities were generated in 2007,

around key issues (fi nancing, tax, retirement/estate planning, business and

home protection, etc.) or important stages in the commercial relationship.

- New clients now benefi t from increased support for the fi rst 12 months.


At the same time, the ramp-up of remote banking

channels is reinforcing the number and quality of contacts

established with clients and prospective clients:

the roll-out of the CRPE support line, fi rst opened in

2006, accelerated in 2007. By the end of the year it was

available to more than 80% of BNP Paribas’ 500,000

entrepreneurs and freelance professionals (see inset);

www.bnpparibas.net/entrepros, the website dedicated

to BNP Paribas’ entrepreneurs and freelance

professionals reported close to 4.2 million visits in

2007 (up 34% versus 2006).

more than 60% of our clients, versus 55% at the end

of 2006, now have a personalised solution for remote

management of their accounts.

These investments have helped improve the satisfaction

of entrepreneurs and freelance professional clients

and thereby strengthened the relationship they have

with BNP Paribas:

satisfaction surveys carried out in 2007 indicate an improvement

in our commercial approach, particularly in

the management of private banking relationships;

the portion of clients for whom BNP Paribas is their

main bank increased in 2007, by close to 1 point in the

freelance professionals segment and more than 2 points

in the entrepreneurs segment.

With the CRPE support

line for entrepreneurs and

freelance professionals,

BNP Paribas completes

its multi-channel offering

The fi nal link in the multichannel

offering designed

for small businesses,

the CRPE call centre is

available without subscription.

Call centre advisers provide

personalised responses

to calls and e-mails sent

by clients and are able

to see requests through

to resolution via a middle-

and back-offi ce interface.

The call centre platform

provides key support to

the Bank’s commercial drive

by transmitting information

on identifi ed opportunities

to the branches and

proposing appointments

with account managers.

This new service aims

to accelerate response

rates, boost client

satisfaction and quality of

relations, and improve the

availability of the network’s

sales force.

BNP Paribas Annual Report 2007 /////// French Retail Banking

In 2007 commercial momentum was directly

driven by the competitiveness and innovation

of BNP Paribas’ offering.

The Esprit Libre Pro package of services and the

BNP Protection Pro offering recorded growth of around

25% in 2007. 49% and 34% of professional clients have

now signed up for these two services respectively.

Launched at the end of September 2007, the new

Solutions Pro Santé service designed for healthcare

professionals has been a resounding success: more than

5,500 contracts were signed in three months (of which

2,500 included a merchant payment agreement).

BNP Paribas’ retirement savings solutions received wide

acclaim in 2007: for the fourth consecutive year, the

Bank was awarded the Label of Excellence from the

investment magazine Dossiers de l’Épargne for its

PEE and PERCO savings plans – subscriptions to these

schemes rose by almost 25% compared to 2006.

Solutions Pro Santé,

a new standard of

effi ciency for healthcare

professionals

The complete and innovative

Solutions Pro Santé offering

responds to changes

in the healthcare sector

and meets the changing

needs of practitioners.

This specially designed

offering combines a range

of services that enable

healthcare practitioners to

manage their business more

easily and therefore devote

more time to patients:

management of professional

and private accounts;

payment of fees

by bank card;

fi nancing solutions;

exclusive assistance.

46_47


Corporate

and institutional clients

BNP Paribas, Marseille

2007: continued success

of Business Centres

Increasingly specialised client requirements have led BNP Paribas to differentiate

its marketing approach according to the specific corporate client segment.

The aim is to position BNP Paribas as the leading bank for companies, institutions

and large associations by drawing on the wide array of services offered

by the Group as a whole.

The strategy is built around the Group’s 24 Business Centres located throughout

France, which are exclusively devoted to corporate clients, institutions

and large associations.

Major corporate accounts are overseen by key account managers based at the

Bank’s main regional offices. These high-level managers work closely with the

Business Centres, the international network and the Group’s other specialised

businesses to create customised solutions for each client.

Additionally, two professional assistance services – Service Assistance

Entreprise (SAE) and Cash Customer Services (CCS) – have been set up

to deal with after-sales issues.

The continued increase in the Bank’s share of the loan market (0.30-point gain

in 2007 – source: Banque de France) and cash infl ows (gains of 1.75 points

for direct debits and 0.90 point for bank cards in 2007 – source: GSIT), as

well as the growth in cross-selling (eight-fold increase in net banking income

generated by CIB businesses between 2002 and 2007) and the improvement

in client satisfaction, bear testimony to the success of this approach in meeting

client needs.


Regional Trading Rooms

Against a backdrop of volatile fi nancial markets, fl attening

yield curves and the euro’s appreciation against the

dollar, the seven Regional Trading Rooms reaffi rmed their

commitment to their clientele of large- and medium-sized

companies, as well as large associations and institutions,

closely assisting them with debt management and currency

hedging.

The trading rooms offer the full range of investment services,

from monetary funds to structured medium-term

notes (index-linked to the equity markets, interest rates,

exchange rates, etc.), thus enabling clients to optimise

cash investments via products of all maturities and all

classes of underlying.

Since June 2007 the Regional Trading Rooms have allowed

their clients to hedge against fl uctuations in the commodities

markets, including metals and energy (oil, gas, CO , etc.).

2

Delisting of Petit Forestier

and entry of a fi nancial

investor into the company’s

share capital: an example

of how BNP Paribas

businesses complement

each other to serve

its clients

Petit Forestier, Europe’s

leading refrigerated

vehicle lease company,

has based its success

on an “all-inclusive” service

offering. With a fl eet

of 30,000 vehicles

the company generates

annual revenues

of nearly EUR 400 million

and operates a network

of 130 branches in France

and eight other European

countries.

Keen to secure the future

of the company created

in 1907, Yves Forestier

and his brother Jean-Claude

had a think about how

their company’s share

capital was organised.

Thanks to a close

and long-running

relationship with the

management of the eastern

Paris region Business

Centre, BNP Paribas

corporate fi nance team

was called on to advise

Petit Forestier in this

operation which brought

a fi nancial investor into

the share capital and

led to the company’s

delisting. The Structured

Finance and Syndication

teams arranged the loan

and the underwriting,

while the Key Accounts

manager ensured smooth

coordination between

the various businesses.

As a result, BNP Paribas

demonstrated its capacity

to assist and advise

a family enterprise

with the reorganisation

of its share capital at a key

point in its existence.

BNP Paribas Annual Report 2007 /////// French Retail Banking

The Regional Trading Rooms work closely with the

Business Centres and the Bank’s CIB and AMS businesses.

This effi cient organisation allows us to offer our clients both

fi nancial market expertise and proximity.

Products and services offered by the Group

as a whole

French Retail Banking develops its commercial offerings

to corporate clients, institutions and large associations by

drawing on the specialised skills of each of the Group’s

businesses. 2007 marked further progress in cross-selling

in such areas as currency derivatives, investment fi nancing,

specialised fi nancing (factoring, equipment fi nance leases,

leasing and management of company vehicles), mergers

& acquisitions and private banking.

These success stories have been achieved through the

effective coordination of the sales teams from the Business

Centres and the Group’s specialised businesses so as to

provide clients with the best possible service.

BNP Paribas, Paris

48_49


Some of the year’s

cash management

success stories

BNP Paribas has become

a preferred banking

partner of EDF in the cash

management domain having

been entrusted with 25%

of direct debit volumes

following an invitation

for tenders launched in 2007.

Alten, the European market

leader in high technology

consulting and engineering,

chose BNP Paribas as one

of its preferred banking

partners for the development

of its business. This new

partnership was founded

on the BNP Paribas

SwiftNet service bureau,

which is fundamental

to the processing of cash

fl ows and the optimisation

of cash management.

J.-C. Decaux, the world

leader in street furniture

and public bicycle

hire programmes,

put BNP Paribas in charge

of the payment side

of the Velib project in Paris,

which allows Parisians

and tourists alike to hire

one of the 20,600 bicycles

available for collection

at 1,451 points around

the capital using a Carte

Bleue or Moneo payment

card (10-15 million

transactions per annum).

Velib has so far handled

14 million rentals.

BNP Paribas has become

the preferred Bank

of the French arm of Diesel,

the world-renowned brand

of jeans, and has been

made responsible

for managing all cash

fl ows at the company’s

French stores.

BNP Paribas has been

chosen by UPS to

coordinate its payments

across 7 countries,

including Italy. The SwiftNet

offering was a key part

of the chosen solution.

Cash Management

BNP Paribas has emerged as one of the uncontested leaders in cash management

in Europe.

With operations in 19 countries across Europe, BNP Paribas and its partner

banks offer clients a network of 24,000 branches in 33 European countries

and 28,000 branches worldwide.

This strong positioning means that the Group is included in the vast majority

of invitations to tender issued by European and International companies.

In 2007, the largest developments initiated by Cash Management were focused

on the “Payment Factory” and Europe with the introduction of a SEPA (Single

Euro Payments Area) offering. This offering enables companies to process

payments in the new European context. Our strategic achievements include

the creation of a multi-channel European platform and the introduction of the

XML “new standards of the future” and SwiftNet concepts.

Cash Management has sales and support teams located around the world

and totally dedicated to clients, enabling it to combine a global offering with

specifi c local features.

This strategy has led to numerous successes in response to invitations to tender

from such companies as EDF, Alten, JCDecaux, Diesel France and UPS

as well as strong market recognition with Euromoney naming BNP Paribas

as “best for robustness of electronic banking platforms – customer service

categories” in 2007.

Corporate card activities continued to make strong progress – BNP Paribas

remained the leader in this fi eld with 60% of the Visa market in France.

Lastly, Cash Management made quite a splash in November 2007 by launching

the fi rst Cash Management University in Paris, an opportunity for our main

partners (SAP, IBM, Swift and PricewaterhouseCoopers, etc.) and more than

150 European clients to get together to talk, exchange ideas, visualise and

understand the major regulatory, technical and organisational issues in the

corporate cash management business.

The Cash Management University was an immense success and is to be repeated

in 2008, making it the unmissable cash management event of the year.


After-sales organisation

2007 represented the beginning of a new phase for our production system,

the goal being to continue consolidating our platforms, increasing their specialisation

and updating their support systems.

At 31 December 2007, there were 83 Production and Sales Support Branches

(PSSBs) in operation, working within 12 Production and Sales Support Groups,

with a total of 4,800 employees.

Productivity gains resulting from the grouping of activities continued, and

focused on:

having back-offi ce platforms take on new tasks;

bolstering sales support units within the PSSBs to smooth communication

between the front and back offi ces.

Alongside these changes, the Bank continued to review all procedures with a

view to optimising and standardising them. 50 “ACE” projects (BNP Paribas

adaptation of the Lean Sig Sigma method) contributed to these changes, while

at the same time improving productivity and quality.

The ISO 9001 (version 2000) certifi cations for the three types of formatting

platforms were renewed.

BNP Paribas, Lille

BNP Paribas Annual Report 2007 /////// French Retail Banking

50_51


Bank of the West, Los Angeles


International

retail services

IRFS becomes BNP Paribas International Retail Services

In April 2008, the Core Business has adopted a new name

that expresses fresh strategic momentum and an integrated

organisation designed to optimise its growth within the

Group. BNP Paribas refl ects the fact that this Core Business,

with 71,000 people and nearly EUR 8 billion in net banking

income, spearheads the BNP Paribas Group’s strategy and

development. International expresses the very essence of

the Core Business, whose footprint currently spans more

than 60 countries. Retail Services as its different activities

are all about delivering retail services to customers, both

individuals and businesses.

52_53


International Retail Services

The International Retail Services (IRS) Division has some 71,000 employees (1) in over 60 countries. At the heart of

BNP Paribas’ growth strategy, it consists of three business lines, boasting well-known brands and in many cases market-leading

positions.

In Retail Banking, IRS manages a network of banks which also serve as platforms for growth for the division’s other businesses

as well as for the Group’s activities in their domestic markets. Retail Banking business is conducted in the United

States via BancWest Corporation. This holding consists of Bank of the West (5th-largest bank in the US) (2) , present in

19 states) and First Hawaiian Bank (the leading bank in the state of Hawaii). The bank network in the emerging markets

is growing strongly and is now made up of 1,993 branches in 34 countries. The business combines brisk organic growth

and targeted acquisitions in a pragmatic way. In addition to strong positions across the entire Mediterranean basin and

the Persian Gulf, a priority development zone, business is being developed in the far east of Europe. The division has also

been present in Africa for many years, notably through BICI (Banque Internationale pour le Commerce et l’Industrie) which

was one of the earliest banking networks in French-speaking Africa.

2007 was marked in household and consumer fi nance by the launch of BNP Paribas Personal Finance which combines

all companies specialising in consumer fi nance (Cetelem) and mortgage fi nancing (UCB and BNP Paribas Invest Immo),

together with the new debt consolidation business (BNP Paribas MRC). BNP Paribas Personal Finance is the European

leader in its market with 25,000 employees in 30 countries.

Finally, the corporate investment fi nancing and business equipment management activities were grouped together within

the Equipment Solutions business, which consists mainly of Arval, dedicated to the long-term management of cars and

light trucks, and BNP Paribas Lease Group (BPLG), specialised in equipment leasing. Both these companies are no. 2 in

Europe in their respective markets.

Thanks to this unique skill profi le, the division serves 53 million clients around the world (including 28 million direct).

Representing the main thrust of BNP Paribas’ international development strategy in retail banking, all IRS businesses have

a strong corporate culture and an ability to adapt to their changing environments.

(1) Number of employees at end-2007.

(2) By deposits.

UkrSibbank, Kiev


Personal Finance

Creation of the leading European specialist

in personal fi nance

In May 2007 Cetelem, UCB and their subsidiaries announced to the press their plan to create BNP Paribas

Personal Finance. Confi rmed in early January 2008 subsequent to the approval of the works councils, the

merger of these companies, with domestic and international positions in consumer fi nance (Cetelem), mortgage

fi nancing (UCB and BNP Paribas Invest Immo) and debt consolidation (BNP Paribas MRC), has created the

European market leader in personal fi nance solutions, with more than 25,000 employees, operations spanning

30 countries and four continents, and a EUR 100 billion loan portfolio at the end of 2007.

Cetelem and UCB team up to create

BNP Paribas Personal Finance

An ambitious industrial and strategic project giving rise to a global

player and European market leader in personal fi nance

The European mortgage and consumer fi nance markets had a combined valued

of more than EUR 6,000 billion at the end of 2006 in terms of total loan portfolio.

These markets are currently registering double-digit growth and changing

fast. BNP Paribas Personal Finance is looking to respond to all the fi nancing

needs of individual clients by offering all loan products through all channels (i.e.

direct, online, brokers, agents, partners, distributors, etc.) and by exploiting the

increasing similarities that exist between these two types of lending. The target

is to become an international player with a EUR 160 billion loan portfolio by

2010 and to be the only non-British/American entity in the global Top 5.

Brand architecture contributing to the commercial development

of this new business

The aim is to capitalise on the strength of the BNP Paribas name for the identity

of this new business and on the reputation and image of Cetelem for the

commercial activity. The UCB brand will be used where necessary, notably

for the BtoB activity.

The “Credito” character, a strong and well-recognised image that has already

been deployed on a global level, is to become the brand and communication

emblem of BNP Paribas Personal Finance, which places responsible lending

at the heart of its development strategy.

Business activity and external growth of Cetelem, UCB and their

subsidiaries: powerful moments of 2007

In China, the alliance between Cetelem and Bank of Nanjing, whose main

shareholder is BNP Paribas, began business operations in March with the

launch of its fi rst point-of-sale loans.

On 3 April, LaSer, a 50%-owned subsidiary of Cetelem (with the other

50% owned by the Galeries Lafayette Group), acquired 5one Marketing Ltd,

one of the European leaders in client marketing services.

After 20 years of European expansion, in May UCB crossed continental

borders to break into the Indian mortgage fi nancing market, through the

creation of a joint venture between UCB (49.9%) and Sundaram Finance

(50.1%). Cetelem, Casablanca

BNP Paribas Annual Report 2007 /////// International Retail Services

54_55


On 18 July, Cetelem announced the acquisition of

a 100% interest in Banco BGN, a specialist in consigned

credit in Brazil. Banco BGN has 107 branches,

840 employees and more than 600,000 active clients.

Brazil already represents the 4th-largest revenue stream

for Cetelem after France, Italy and Spain, and the acquisition

should signifi cantly strengthen Cetelem’s presence

in the country.

On 30 July 2007, LaSer consolidated its capital position

in the Netherlands by buying up the remaining 40%

stake held by SNS Reaal Invest (SNS Reaal Groep) in

LaSer Nederland, making it a wholly-owned subsidiary

of LaSer-Cofi noga.

In August, Cetelem Russia began operations with the

signing of its fi rst agreement in Nijni Novgorod. By the

end of 2007, Cetelem Russia had reached its objective

of extending sales coverage throughout the country

with offi ces in ten major Russian cities and a portfolio of

more than 3,000 clients.

On 3 August 2007, Cetelem acquired a 100% interest in

JetFinance International, a leader in specialised consumer

credit in Bulgaria. JetFinance International operates

in more than 150 Bulgarian cities, has 800 employees

and offers its products in more than 3,600 points of sale

and via its own branch network. The acquisition is in line

with Cetelem’s aims to develop its activities in emerging

countries and strengthens its regional coverage and its

position as continental Europe’s leader in consumer

credit.

In September, Cetelem opened the fi rst European-wide

e-credit portal dedicated to commercial websites. The

multi-lingual portal is perfectly integrated into commercial

sites, regardless of their geographic location, and

enables these sites to fi nance their European clients

through a single liaison point. Cetelem also announced

the signing of an agreement with its partner Pixmania

related to the implementation of this solution on six of

its European sites.

In November 2007, UCB set up operations in the German

real estate market, one of the largest in Europe.

Cetelem fi nalises the implementation of its new

operational organisation in France

In September 2007, Cetelem fi nalised its ambitious project

for growth and innovation “Defi 2008”, through the

opening of fi ve new CRCs (Client Relations Centres), in

addition to the twelve CRCs opened in September 2006.

This reorganisation of Cetelem’s French network, better

adapted to its clients’ evolving needs and its technological

environment, strengthens the quality of its relationship

with partners and clients and boosts overall

competitiveness.

Doppie Fedelta, a cross-selling offer from

Banca UCB and BNL

As part of the strategy of creating and developing synergies

within the Group, a fi rst cross-selling agreement was

entered into between UCB’s Italian subsidiary, Banca

UCB, and the BNL retail network. This synergy offers

Banca UCB clients preferential interest rates in exchange

for the opening of a BNL deposit account and domiciliation

of their income.

Eco-friendly loans

On 26 June 2007, UCB

launched “eco-friendly”

loans: Bons Plans Écologie

offers all prospective

loan applicants who have

a “green” project – i.e.

a project to buy a new

construction using energysaving

equipment or

materials – the chance

to add a 1% interest

rate loan of up to

EUR 6,000 to their UCB

construction loan.

With this complementary

loan, UCB gives its clients

an opportunity

to make their acquisition

project friendly to both

the environment and their

budget.

On 17 October, Cetelem

launched its Oxygène

programme, aimed at

encouraging consumers

to choose “green

products” and at

promoting environmental

awareness among its

employees.


Equipment Solutions

These companies use a multi-channel approach (direct sales, sales via referrals or via partnerships) to offer

their corporate and business clients a range of solutions specifi c to each asset market, from fi nancing to fl eet

outsourcing.

Equipment Solutions offers its end users and business providers the opportunity to outsource the credit,

market or technical risks associated with corporate assets.

Equipment Solutions consists of three International Business Lines (IBLs) which are organised according to

the assets and leasing solutions offered, more specifi cally:

the car and light vehicle IBL managed by Arval, dedicated to long-term lease management services;

the IT, telecom and copying equipment IBL run jointly by BNP Paribas Lease Group, specialised in equipment

fi nancing, and Arius, specialising in the leasing and management of IT equipment;

the construction, agricultural and transport equipment IBL, which is run by specialists at BNP Paribas Lease

Group and Artegy, engaged in the long-term management of heavy industrial vehicles.

Commercial real estate and other assets are managed by the local entities of BNP Paribas Lease Group.

Services offered by Arval

Purchasing and fi nancing

of cars and light trucks

under long-term leasing

arrangements

“Vehicle strategy” advisory

services

Strategic advice on fl eet

management through Arval

Consulting

Vehicle maintenance

management, under either

fixed-price or cost-plus

invoicing models

Roadside assistance

and replacement vehicle

management

Insurance and claims

management

Fuel card management

Fleet management

reporting

Fleet buyback

BNP Paribas Annual Report 2007 /////// International Retail Services

The development of Equipment Solutions gained momentum in Europe in

2007 with 74% of Arval’s operations and 54.1% of BNP Paribas Lease Group’s

operations being conducted outside France.

At the end of 2007 Arval had a total fl eet of 538,000 vehicles under lease, an

increase of 8% from the previous year, and it ranked no. 1 in France and no. 2

in Europe (source: SNLVLD).

BNP Paribas Lease Group has set up over 266,418 fi nance contracts totalling

EUR 20.3 billion, making it no. 1 in Europe in equipment leasing (source:

Leaseurope 2006).

In France, BNP Paribas Lease Group is no. 1 in the equipment leasing market,

with an 18.6% market share (source: ASF, 2007).

In Italy, the link-up with Locafi t, a subsidiary of BNL, has created a major player

in the market: no. 2 in equipment leasing by value of outstandings (source:

Leaseurope 2006).

Furthermore, the division’s short-term wholesale fi nance business fared particularly

well in 2007, registering growth of 19.8% across all countries.

Arval

2007 marked Arval’s operational launch in Brazil, Russia and Romania.

The company also set up three new subsidiaries – in Turkey (in cooperation

with TEB), India and Greece.

Moreover, a particular subsidiary – Greenval – was created to favour the development

of insurance activity.

Arval Netherlands was chosen as the country’s best employer (across all sectors)

and best leasing company.

Lastly, Arval actively supported sustainable development through such initiatives

as:

Arval France’s launch of a “green vehicle” catalogue;

publication of a “12 Commandments of Sustainable Development” charter.

56_57


BNP Paribas Lease Group

2007 witnessed the signing of new partnerships in every country where

BNP Paribas Lease Group operates and in all the sectors represented:

opening of a Claas Financial Services (CFS) branch in Italy. The CFS/SAS

joint venture is now operational in fi ve countries: France, Germany, Spain, the

United Kingdom and Italy;

launching of Solutrailers, a full-service semi-trailers business activity in

France;

signing of a commercial partnership with Aloka, a Japanese manufacturer of

ultrasound equipment;

launching of a European-wide multi-brand assistance contract for industrial

vehicles of over 3.5 tonnes in partnership with Truck Assistance International

Transports Assistance (TAI TA);

signing of a real estate lease with SCI Grand Cap to extend the “Grand Hôtel

du Cap”, a legendary luxury hotel located at Saint-Jean-Cap-Ferrat;

real estate lease-fi nancing of a clinic for the Orpea Group, a leading play in

the long-term care sector in Europe.

BNP Paribas Lease Group is now active in 22 countries – through its own

establishments, those of BNP Paribas, or through cooperation agreements

with local fi nancial institutions.

BNP Paribas, Madrid

Services offered by Arius

Leasing solutions:

- hardware and software

- France and abroad

Dynamic desktop asset

management:

- taking into account

administrative, financial,

technical and physical

aspects

- online, real-time data

management

Equipment renewal:

- recycling

- compliance with waste

processing standards

relating to end-of-life

equipment

BNP Paribas Lease

Group’s offerings

Finance leases

Operating leases and

fl exible leasing solutions

Hire and fleet management

Medium-term financing

Property and personal

insurance

Financial management

of distribution networks

(Wholesale Finance)

Management of brands

and joint ventures

Repurchase of leases

and receivables

Leasing of real estate

assets

Services offered by Artegy

Full service long-term

leasing for commercial

vehicles:

- joint vehicle design,

followed by manufacture

and delivery

- inspection follow-up

- maintenance and tyre

management

Fleet management

Fleet buyback

Resale of used vehicles


BancWest

In the United States, the Retail Banking business is conducted through BancWest Corporation, a company

formed out of the 1998 merger between Bank of the West and First Hawaiian Bank, wholly-owned by

BNP Paribas since the end of 2001. BancWest has completed a number of acquisitions since that date, the

latest being Commercial Federal Corporation in December 2005.

Bank of the West offers a very large range of retail banking products and services to individuals, small

businesses and corporate clients in 19 states in western and mid-western America. It also has strong national

positions in certain niche lending markets, such as marine, recreational vehicles, church lending, and small

business administration.

With a market share of close to 40% based on deposits (source : SNL Financial, 30 June 2007) First Hawaiian

Bank is Hawaii’s leading bank, offering banking services to a local clientele of private individuals and

companies.

In total, with close to 12,000 employees, 742 branches and total assets of USD 74 billion at 31 December 2007,

BancWest currently serves some 4 million client accounts. It is now the 6th-largest bank in the western United

States by deposits.

Bank of the West, Los Angeles

BNP Paribas Annual Report 2007 /////// International Retail Services

After nine months of sustained growth, the American economy slowed signifi

cantly in the fi nal quarter, with GDP dipping to 0.6%. For the year as a whole

the economy grew 2.2%, the lowest rate since 2002 and 1% below the average

for the 2004-2006 period.

The major downturn in the real estate market fi rst made itself felt in the subprime

segment before touching off a fi nancial crisis and fi nally spilling over

into the real economy. At the end of 2007, all economic indicators pointed to

a slowdown extending far beyond the real estate sector alone.

In spite of the infl ationary tensions generated by the weak dollar and rising

prices for oil and other commodities, in September 2007 the US Federal

Reserve embarked on a fast-paced, far-reaching programme aimed at loosening

monetary conditions through successive cuts in key rates – bringing

them from 5.25% down to 4.25% – and massive injections of liquidity.

After several years of strong growth and high profi tability, operating conditions

for American banks took a turn for the worse while competition for both loans

and deposits increased. This unfavourable situation for banks was exacerbated

by the ongoing inversion of the yield curve (short-term rates higher than

long-term rates) leading to a general erosion in intermediation margins. Lastly,

credit risks, which had been at historically low levels, deteriorated signifi cantly,

particularly during the second half of the year.

Despite this diffi cult business environment, BancWest kept to the organic

growth plan initiated the previous year. Bank of the West’s new sales organisation

was systematically rolled out and the product and service range was

uniformly offered throughout the network, to corporate and individual clients

alike. The infrastructure and systems needed to develop cross-selling were

put into place. Major investments were made with a view to strengthening the

Bank’s presence on the corporate market and ten specialised branches were

opened during the year. Private banking services were extended to cover the

entire network through the organisation of dedicated regional teams.

58_59


Bank of the West, Los Angeles

In those of its activities exercised throughout the United

States, Bank of the West reported gains in market

share, underscoring the quality of its specialised teams.

The Bank is now the 3rd-ranking (source: Ag Lender)

American bank in terms of agricultural fi nancing and the

national leader (source: Statistical Savings Inc.) in the

fi nancing of recreational vehicles.

The economic downturn and the pressure on intermediation

margins were thus partially compensated by robust

growth in loan volumes and in fees and commissions

related to insurance products, capital markets, cash

management, etc.

Although Bank of the West was only marginally exposed

to subprimes, it had to deal with an increase in the cost

of risk, mainly due to the sharp deterioration in the residential

construction sector. Nonetheless, thanks to the

prudent selection policy applied in previous years, the

impact of the crisis was much more moderate than that

observed for most market players.

In Hawaii, the economic environment remained much

more favourable throughout the year, due to the specifi c

characteristics of the local economy. First Hawaiian Bank

strengthened its leading position, turning in excellent performances

in terms of both sales and fi nancial income.

At 31 December 2007, BancWest had total assets of

USD 74 billion and 742 branches in 20 states. It is now the

6th-largest bank in the western United States in terms of

deposits.


Emerging Markets

The Retail Banking in the Emerging Markets business is now present in 34 countries, covering the Mediterranean

basin (with more than 670 branches), the Near and Middle East (55 branches), Africa (90 branches), the

far east of Europe (1,000 branches), Asia (60 branches in China and 59 in Vietnam via 2 partnerships with

local banks) and the French overseas departments and territories (55 branches). Across all these regions,

the business operates a total network of 1,993 branches with more than 4 million individual, corporate and

business clients and 23,700 employees.

The business has developed rapidly since 2004, and now consists of fi ve times more branches and four times

more clients. It has also set up operations in 10 new countries since the end of 2004, both through acquisitions

(Turkey and China in 2005, Ukraine in 2006, Vietnam and Libya in 2007) and organic development (Saudi

Arabia, Kuwait, Mauritania and Russia).

This change of dimension has been accompanied by restructuring measures, involving the creation of regional

platforms and a new commercial strategy focusing on private individual clients and SMEs.

These networks with their fast-growing client bases constitute a unique distribution platform for all of the

Group’s businesses: partnerships with Personal Finance in Turkey, Ukraine, Algeria, Morocco and China;

distribution of CIB’s structured products across all networks and integration within CIB’s network of Trade

Centres; creation of a joint venture with the Private Banking business.

Accelerated expansion

In 2007, the Retail Banking in the Emerging Markets business experienced signifi

cant growth in its networks, activities and profi tability. Against a deteriorating

economic backdrop, the business confi rmed its role as the Group’s growth driver.

The Bank pursued a pragmatic but ambitious strategy in all of its 34 operating

territories, focusing on:

organic growth and the enhancing of product and service offerings in countries

with existing operations;

launching operations in new countries through the creation or acquisition of

networks;

developing partnerships with other Group businesses, bringing together the

distribution strength of the Emerging Markets networks and the expertise of

BNP Paribas’ various businesses.

Existing networks expanded significantly in 2007 with the creation of

187 branches, 103 of which in Turkey, 50 in North Africa and 13 in the Near

and Middle East. The business now has 1,993 branches (including in China and

Vietnam through partnerships).

The networks’ product range was enhanced with new products, often breaking

new ground on local markets: Crédit Réserve in Côte d’Ivoire, Kimi Crédit

(based on the tontine principle) in Gabon, the Visa Platinum card in Morocco, the

fi rst Visa ATMs in Algeria, payment by mobile phone in Turkey and mobile phone

banking in Ukraine. Moreover, several subsidiaries in the Gulf region provided

their fi rst Islamic fi nancing.

In parallel, recently launched operations – in Saudi Arabia, Kuwait and Mauritania

– continue to expand successfully.

BNP Paribas Annual Report 2007 /////// International Retail Services

60_61


In 2007, operations were set up in three new countries:

In Russia, the Group began its development in retail banking. Thanks to

major recruitment and training efforts, the Russian subsidiary had nearly

300 employees by the end of 2007. With its current focus on corporate

fi nance, the Bank’s loan volumes are exceeding initial forecasts. The scope

of activity will be broadened in the fi rst part of 2008 through the launch of

operations targeting individuals, professional clients, SMEs and development

outside Moscow.

In Libya, the Group acquired 19% of the capital and operational control of the

Sahara Bank in September, with the option of increasing its stake to 51% in

three to fi ve years. BNP Paribas and Sahara Bank will be developing several

joint programmes, enabling the Bank to take advantage of the rapid expansion

of the Libyan economy and the opening of its market to international

operators. (see box)

In Vietnam, BNP Paribas acquired 10% of the capital of Orient Commercial Bank

(OCB) at the end of December and will be increasing its stake in this retail bank

to 20%. The terms of the agreement provide for the creation of a strategic partnership

to develop the Vietnamese bank’s retail banking and consumer finance

activities.

In all of these countries, the networks support the development of the

Group’s other businesses. The recent partnerships with TEB in Turkey and

UkrSibbank in Ukraine have spearheaded this strategy. Most of the Group’s

businesses are already active in these two countries or are exploring opportunities

to be so.

The Group is equally active in other geographic areas as witnessed by the operation

launches by BNP Paribas Lease Group within BNP Paribas El Djazaïr in

Algeria and the extension to Egypt of the partnership with International Private

Banking. Collaboration with CIB’s businesses is being developed in all operating

territories with regard to export and commodity fi nancing and distribution

of market products through the networks (particularly in the Gulf countries).

Cooperation with BNL was stepped up with the creation of Italian desks in

Algeria, Tunisia and Turkey as well as Dubai for the Gulf region. Their services

will enable the Bank to support the development of Italian companies in these

countries.

The Group’s fi rst

advances in Libya

Libya, one of the world’s

largest producers of oil

and gas, is gradually

opening up its markets

and has undertaken

far-reaching economic

reforms (liberalisation of

several business sectors,

privatisation of the

public sector and major

investments, particularly

in infrastructures). Growth

prospects are therefore

highly favourable.

As part of the restructuring

and privatisation of the

banking sector, BNP Paribas

was chosen by the local

authorities as Sahara Bank’s

strategic partner. The Group

has thus become the fi rst

foreign bank to operate

as a full-service bank in

this country. Tripoli-based

Sahara Bank was

founded in 1964 and

has 1,500 employees.

It is the 2nd-largest bank

in the country in terms of

assets and has a network

of 48 branches in 26 cities.

Its client base consists

of major public companies,

Libyan and foreign

companies and more than

300,000 individual and small

business clients. In terms

of loans and deposits, its

market shares are 17% and

22% respectively.

This partnership reinforces

the Group’s presence in

the Mediterranean basin,

which is one of its priority

development areas and a

region where the Group can

now boast an unrivalled

platform. The partnership

will provide opportunities

for many synergies

with the Group’s various

businesses and entities.

BNP Paribas also opened

a representation offi ce

in Libya in 2007.


Enhanced presence

in high-potential countries

The Emerging Markets business concentrated its development efforts on

countries where banking markets are expanding rapidly.

Mediterranean basin

In Turkey, Türk Ekonomi Bankası (TEB), whose holding company, TEB Mali, has

been 50%-held by BNP Paribas since February 2005, is growing at an accelerated

rate. Since December 2005, the network has grown threefold to more than

270 branches, enabling TEB to serve 1.3 million clients. This dynamism is bolstered

by a strong capacity for product innovation. Through the creation of Turkish

desks in Algeria, Egypt, Israel, Ukraine and Russia, and the opening of branches

in neighbouring countries, TEB supports its clients’ international development.

Now present throughout North Africa, the Group’s over 400 branches represent a

unifi ed platform for this fast-growing market. Local subsidiaries hold leading positions

in Morocco (no. 3) and Libya (no. 2) for the outstanding loans. Operations

in Algeria are expanding rapidly. Launched in 2002, BNP Paribas El Djazaïr now

has 36 branches. The subsidiary is mainly orientated towards corporate and

trade fi nance and individual clients. In order to strengthen its position on the SME

market and actively assist the development of Algerian companies, BNP Paribas

El Djazaïr created the Académie des PME (the SME Academy) modelled after the

TEB Kobi Akademi in Turkey. Similar programmes are planned in the business’

other territories.

TEB, Istanbul

BNP Paribas Annual Report 2007 /////// International Retail Services

62_63


BMCI, Casablanca

Far east of Europe

In Ukraine, UkrSibbank (in which BNP Paribas acquired a 51% stake in April

2006) has enjoyed fast-paced development since its acquisition with the

opening of 217 new branches and the implementation of major restructuring

efforts – simplifi cation of processes, stronger training and management

efforts, improved internal control and risk management, etc. In parallel, local

partnerships have been set up with Cetelem, BPLG and Cardif. UkrSibbank

is also supporting the launch of other Group businesses (Arval, Atisreal and

BNPP Asset Management). A partnership with AXA, strengthened by the

joint acquisition of the 6th-largest local player, enabled AXA and UkrSibbank

to achieve the 4th-ranking position on the property and casualty insurance

market. UkrSibbank is now the country’s 3rd-largest bank in terms of assets

and has been named bank of the year in Ukraine by Euromoney and Global

Finance.

In Russia, the Group invested in the organic development of a local bank

network.

Near and Middle East

BNP Paribas is currently implementing a large-scale expansion plan in Egypt.

The Gulf States are served by the regional headquarters in Bahrain, which is

responsible for six territories: Bahrain, Abu Dhabi, Dubai, Qatar, Saudi Arabia

and Kuwait. A new branch was opened in Jebel Ali in the United Arab Emirates.

The Group also has operations in Cyprus and Lebanon. A partnership with

the International Private Banking business line offers comprehensive wealth

management solutions for the entire region.


Asia

In China, the Group is developing a strategic partnership

with Bank of Nanjing, in which it holds a 12.6% stake.

The two banks have begun to cooperate closely in retail

banking and consumer credit as well as processes, risk

management and organisation. In 2007, Cetelem launched

a consumer credit business in Nanjing. The listing

of the Bank of Nanjing on the Shanghai Stock Exchange

made it possible to raise the necessary funds to continue

the geographic expansion begun in 2007.

In parallel, the Group signed a strategic partnership with

the Vietnamese bank Orient Commercial Bank (OCB).

Africa – French overseas departments

and territories

BNP Paribas’ operations in Africa are organised around

the network of Banque Internationale pour le Commerce

et l’Industrie (BICI). With 90 branches located in six

countries (Burkina Faso, Côte d’Ivoire, Gabon, Guinea

Conakry, Mali and Senegal), the Emerging Markets business

manages one of the largest banking networks in

French-speaking Africa. The business also has operations

in Madagascar. In the French overseas departments

and territories, it has 55 branches and enjoys prominent

market positioning.

BNP Paribas and AFD,

partners in microfi nance

and sustainable

development

In March, BNP Paribas

signed a framework

agreement with AFD

(the French Development

Agency) in the areas

of microfi nance and

sustainable development.

The agreement applies

to countries where both

organisations operate

and strengthens institutional

links as well as existing

partnerships, particularly

in North Africa, sub-

Saharan Africa, Turkey

and the French overseas

departments and territories.

Financing of microfi nance

institutions or SMEs,

combined with the issuance

of guarantees by AFD

through its ARIZ fund or

its subsidiary Proparco,

has already begun in

Madagascar, Guinea,

Senegal and, more recently,

Mali. The Mali BICI has

just granted a loan to the

microfi nance institute

Miselini, which fi nances the

small businesses and craft

industries of about 14,000

women in the disadvantaged

areas of Bamako.

In several countries,

the Group’s subsidiaries

also receive long-term

refi nancing from AFD for

client projects related to

sustainable development.

Two agreements for

EUR 40 million were signed

in 2007: with TEB (Türk

Ekonomi Bankası) in relation

to social responsibility

and with three Tunisian

banks, including UBCI,

for environmental projects.

BNP Paribas Annual Report 2007 /////// International Retail Services

BICIS, Dakar

64_65


BNL, Roma


BNL

commerciale

BNL bc

Banca

66_67


BNL banca commerciale

BNL banca commerciale (BNL bc) plays an important role in the Italian banking system in a context of rapid restructuring

marked by an acceleration in the consolidation process between Italian banks, particularly the larger ones, and by the

introduction of a regulatory framework which is much more geared towards competition and consumer protection.

BNL banca commerciale has a large and diversifi ed client base consisting of:

around 2.5 million individuals and 13,000 Private Banking clients;

more than 112,000 small businesses;

more than 36,000 mid-corporates;

16,000 local authorities and non-profi t organisations.

BNL bc has a comprehensive and segmented offering of banking, fi nancial and insurance products and services, which

range from the traditional to the most innovative, and are structured to respond to the needs of each client category.

In Retail and Private Banking, BNL bc has particularly strong positioning in the loan business (especially residential mortgages

with market share of over 6% and is gaining ground in the deposits segments (market share of more than 3.5% (1) ).

Relationships with companies and local authorities are also a strong point, with BNL bc holding market share of around

4.5% (1) and 6% (1) respectively in these segments, along with a well-established reputation in cross-border transactions,

project fi nancing and structured fi nance, as well as factoring, which is offered through a specialised subsidiary Ifi talia (rated

no. 3 (2) in Italy by portfolio).

With a view to developing this client base as much as possible, BNL bc has reorganised its distribution model so as

to increase direct contact with clients, reinforce the central role and fl exibility of the sales network and improve communication

of commercial policy regarding both innovative and standard products. Within a multi-channel framework the network

has been divided into 5 regions (“direzioni territoriali”) with the Retail Banking and Corporate Banking activities being run

as separate structures:

125 Retail Banking groups with more than 700 branches;

23 Private Banking Centers;

21 Corporate Centers with 51 branches dealing with SMEs, large corporates, local authorities and public sector

organisations.

In addition, fi ve Trade Centers have now been opened. These units offer companies a range of products, services and

solutions for cross-border activities and complete BNP Paribas’ international network which consists of 85 centers spread

over 55 countries. At the same time, BNL has strengthened the network that assists Italian companies abroad as well as

multinational companies with direct investments in Italy, by opening 8 Italian desks in different countries.

The multi-channel offering is rounded out by around 1,300 ATMs and 20,000 POS, as well as telephone and online

banking services for both private clients and businesses.

The reorganisation also involved the adoption of a new structure that brings the back offi ce closer to the distribution

network through the creation of specialised local units in fi ve regions. The aim of the new model is essentially to increase

satisfaction of both internal and external clients through higher quality and more effective service and better management

of operating risk.

(1) Source: Bank of Italy statistics.

(2) Source: Assifact.

BNL, Rome


Strategy highlights

During 2007 BNL banca commerciale (BNL bc) effectively followed the value

creation path defi ned in the 2007-2009 BNP Paribas Group integration plan,

by focusing on three fundamental goals:

investing for organic growth, especially through a revitalisation of its strong

national franchise and relations’ framework;

boosting BNP Paribas’ existing activities by plugging a powerful distribution

network to world-class product factories;

maintaining a close control on the cost base by optimising the effi ciency

of both the functions and operations (back offi ces), while ensuring an adequate

programme of training and renewal of its staff.

With regard to operating effi ciency, 2007 initiatives have led to signifi cant

results, fi rst of all, in terms of staff quality and cost optimisation: the early

retirement plan has been substantially anticipated coupled with an innovative

recruitment campaign designed to hire fi rst-class young professionals almost

entirely dedicated to commercial structures (around 770 people by year-end

2007); the training programme more than doubled in comparison to the previous

year, covering the majority of the main commercial roles under the new

organisational network; several activities have been dedicated to an effective

change in management both at central and network level.

Tennis sponsorship

Since the acquisition

by BNP Paribas Group,

BNL is strongly engaged

in developing tennis at

all levels in Italy, in the

belief that it is a powerful

instrument for social

aggregation and valorisation,

which can boost BNL’s

awareness and help support

business. In 2007 BNL has

become Title Sponsor of

the “Internazionali BNL

d’Italia” with an agreement

that will last until 2011. This

tournament is the most

important tennis event in

Italy, with an attendance

of 144,000 people, total

satellite TV coverage and

with semi-fi nals and fi nals

broadcasted by one of the

leading Italian TV’s, a total

audience of 144 million

people and a TV coverage

of 270 hrs. BNL invited more

than 4,000 guests from

different markets and BNP

Paribas poles, and enjoyed

major visibility also thanks

to a dedicated advertising

campaign, and an important

press coverage delivering

almost 500 articles.

During 2007 the partnership

between BNL and tennis

has further increased

through the support of other

important tournaments

BNP Paribas Annual Report 2007 /////// BNL banca commerciale

such as the BNL Revolution

Cup, Inter banks Italian and

European tournaments as

well as the organisation

in Italy of the Davis Cup

and the Fed Cup by

BNP Paribas tournaments

in Italy, including the World

Juniores matches in Reggio

Emilia. Furthermore BNL

also supports handisport

tennis (the Wheelchair

tennis Master of Rome and

the “3rd ITFR World Tennis

Championship-Rotarians’

Tennis Meeting”).

68_69


Retail & Private business

First tangible results from new policies

The positive performance of BNL bc Retail & Private

business is the result of a considerable number of key

initiatives launched in the course of 2007:

to carry out a reorganisation of the client segmentation

and the defi nition of a revised service model;

to revitalise customer acquisition potential, through a

far-reaching and innovative programme of specifi c campaigns

and initiatives, supported by competitive advertising

and the creation of the basis for the development of

a truly multi-channel distribution network;

to strengthen customer retention, with the introduction

of new prediction models and the monitoring of clients at

risk whilst enhancing a proactive approach also through

anti-attrition offers;

to re-defi ne product offering with a dual approach of

rationalising the product range on the basis of the new

segmentation whilst increasing product innovation;

to increase Private Banking Assets Under Management

in order to improve profi tability and customer satisfaction

by integrating upper affl uent clients from Retail;

to provide a new focus on communication with 5 advertising

campaigns on an innovative cinema format,

allowing a revamping of brand awareness and image

towards progress and innovation.

.

BNL, Roma

A year of intense product innovation

BNL bc has committed to a complete overhaul of the product

offer in the course of the year with the launch of new

and innovative products exploiting BNP Paribas’ knowhow

and world-class product factories.

½ An innovative approach to segmentation

An innovative approach, based on customers’ real potential

and adapted from the Group’s French experience, has

been introduced in BNL bc:

the Individuals market has been divided into 7 segments

based on income, wealth, age, product portfolio

and profession, designing a specifi c strategy for each

segment;

business customers have been divided into two

segments: small businesses (up to EUR 750,000 of

annual turnover, branch service model designed to also

capture individual side potential) and SME (up to

EUR 5 million of annual turnover, service model based

on dedicated relationship managers). In each category

the focus is given to high potential/high income/low risk

clients.

½ “Revolution” line of products

The “Revolution” line of products aims to introduce new

attractive solutions on traditional products and to leverage

on innovation to attract new clients. It covers a range of

products like:

“BNL Conto Revolution”: fl exible current account providing

a unique pricing model payable only in the month

the branch is used by the customer. This pricing model

encourages the free usage of remote channels (ATM,

phone, internet) transferring part of the cost benefi ts to

the customer. The introduction of this product has resulted

in an increase in account openings of nearly 40%

compared to the previous year; coupled with decreasing

closures. This has brought about a trend reversal in net

current accounts which in 2007 returned to positive territory

with 6,500 net new accounts after several years of

signifi cant net outfl ows;


“BNL Mutuo Revolution”: residential mortgage offer with the unique combination

of loan-to-value up to 100%, duration of up to 40 years and fi xed

interest rate and “BNL Prestito Personale Revolution”: personal loan with

a duration of up to 120 months and for amounts up to EUR 100,000. With

these two products BNL aims at increasing the accessibility of loans for

young couples, one of the growing segments of the market, currently under

represented in BNL’s customer portfolio. After the launch of these products,

production of both residential mortgages and consumer credit have signifi -

cantly accelerated;

“BNL Libretti di risparmio Kids”: a successful co-marketing experience

with major movies (Arthur and the Minimei, Pirates of the Caribbean, The

Winxs) dedicated to young customers and generating 28,000 new savings

accounts in 2007.

½ Asset Management products

As a consequence of the strong co-operation between BNL bc and

BNP Paribas product factories, BNL bc’s Asset Management offer has been

characterised by wide-ranging innovation, targeting two main areas:

revising and rationalising the mutual fund offer: “BNP Paribas Equipe”:

structured around three different investment profi les to match clients’ risk

appetite and with a fl exible management style based on bonds and equity mix,

BNP Paribas 100% e più”: coupling capital guarantee with the possibility of

benefi tting from equity market trends in three different geographical areas

Europe-wide. The two products have gathered EUR 1.7 billion in six months;

in order to add value and attractiveness to the whole range of investment

products, in the course of 2007 BNL has also started distributing certifi cates

of BNP Paribas: equity protection, twin win, jet and other products dedicated

to Private Banking clients, gathering a total of almost EUR 200 million.

½ Insurance and Credit Protection products

Insurance and Credit Protection products – strengthened by the effective cooperation

with BNP Paribas product factories – have represented a key profi -

tability driver in the 2007 performance of Retail & Private, thanks to:

the placement of signifi cant amounts of both unit-linked and index-linked

life insurance products, allowing BNL bc to rank amongst the top banking

players in the industry in terms of gross premiums;

the revitalisation of credit protection offering: “BNL Serenity”: dedicated to

residential mortgages protection, “BNL Continuity”: dedicated to protect

business continuity from life events. Since the launch of these products,

the percentage of capital protection on new lending has almost tripled,

increasing from less than 20% at the beginning of the year to 50% over the

last months of 2007;

in October BNL bc has started selling “Serenity” also to the existing stock of

mortgages, assuring EUR 210 million in mortgages in 2007.

BNP Paribas Annual Report 2007 /////// BNL banca commerciale

70_71


Corporate business

The basis for sustainable growth in profi tability

2007 was a year of far-reaching renovation for the

Corporate business of BNL bc centred around the

following areas:

re-design of the network aimed to improve client service

level also through a new segmentation approach designed

to enhance cross-selling with CIB and introducing

25 senior bankers dedicated to top Mid Cap clients;

introduction of product specialists and risk structures

throughout the entire commercial network;

enhancement of product offer especially in cash management,

trade fi nance and structured fi nance deals with

SMEs;

full integration into BNP Paribas’ international reach, thus

providing client access to 85 countries and strengthening

the presence in the Mediterranean area;

BNL, Roma

This business has achieved signifi cant results in the year,

confi rming BNL bc’s historical role as a reference bank

for both companies and local authorities and leveraging

on the vast synergies potential offered by the international

presence and fi rst-class product factories of

BNP Paribas Group, notwithstanding a challenging market

environment where the introduction of new regulations,

especially penalising on loans’ pricing, coupled with

higher interest rates, has adversely impacted the margins

at industry level.

Corporate Social

Responsibility

In BNL Corporate Social

Responsibility aims

to achieve choices of

sustainable development.

The concept of sustainable

development is based on

three closely interrelated

principles:

1) social equality, in the

sense of fairness and

impartiality between

generations;

2) environment preservation,

meant as maintenance

of the stock of natural

resources and biological

diversity;

3) economic competitiveness,

meant as the ability of

the economic systems to

create wealth assuring

social cohesiveness

and respect for the

environment.

In particular, BNL’s

commitment to social needs

fi nds its best example in the

partnership with Telethon,

the most important fund

raising initiative in Italy

and in Europe. BNL has

been supporting Telethon

Fondazione Onlus for the

past 16 years, raising over

EUR 172 million (about half

the total amount gathered)

for scientifi c research on

genetic diseases. In this way

BNL has supported more

than 2,000 initiatives and

over 460 discoveries of great

scientifi c value. In 2007 BNL

enhanced its support for

Telethon by launching a prepaid

card “MyCash BNL per

Telethon” and a three-year

bond “BNL Step”, whose

transaction fees are devolved

by BNL to Telethon.

Furthermore BNL is an

active supporter of sports,

art, culture, music, theatre

and cinema; as part of this,

BNL is the main partner of

“Cinema Festa Internazionale

di Roma” a major event

for both professionals

and cinema lovers.


structured fi nance deals with SMEs more than doubled whilst the fi rst joint

deals with CIB grew especially in the second part of the year;

opening 5 Trade Centers in Italy and 8 Italian Desks in particular in

countries of the Mediterranean area and Russia has created the conditions

for a rapid expansion of cross-border and other international-related products

and services;

on the basis of a new integrated platform with BNP Paribas, the cash management

offer was re-designed in the last months of 2007, coupled with an

innovative advertising campaign;

local authorities relations have been consolidated and strengthened, resulting

in an improvement in the market position and a considerable growth of

the related profi tability.

A stronger control of risks

As part of the alignment to BNP Paribas’ standards and of the strict attention

placed by BNL bc on its risk profi le, the credit approval process has been

integrated with the “4 eyes” concept; as a result credit approval decisions

are to be shared by commercial and risk management structures. The new

concept introduces the following changes in the credit approval process:

a binding credit opinion is to be provided by the risks structure which forms

integral part of the credit approval;

the commercial division is responsible for the credit approval;

a team of specialised credit analysts has been set up to provide credit

opinions;

should the commercial and risk opinion diverge, the approval process escalates

to a higher approval level.

BNL, Roma

BNP Paribas Annual Report 2007 /////// BNL banca commerciale

72_73


BNP Paribas, Singapore


Asset

and

management

services

74_75


Asset Management & Services

The Asset Management and Services core business comprises all of the Group’s investor services businesses and

leads the BNP Paribas asset gathering effort. One of the foremost players in Europe, AMS offers fund management and

discretionary asset management services, backed by a range of high value-added investor services.

AMS leverages expertise in three main areas:

Wealth and Asset Management, comprising Asset Management (BNP Paribas Investment Partners), online brokerage

and personal investment services (BNP Paribas Personal Investors), Private Banking (BNP Paribas Banque Privée) and

Real Estate Services (BNP Paribas Immobilier);

Insurance (BNP Paribas Assurance);

Securities Services for corporate clients, fund managers and fi nancial institutions across the globe (BNP Paribas

Securities Services).

Through these six businesses, which employ a total staff of 23,500 in some 60 countries, AMS offers a comprehensive

range of products and services to a broad investor clientele, including institutional clients, corporations and private

individuals.

In 2007 each AMS business was a leader in its market both in France and at a European level.

BNP Paribas, Madrid


BNP Paribas Private Banking

Private Banking offers high value-added products and services designed to respond to the expectations of

a sophisticated, wealthy clientele.

The Private Banking offering includes:

wealth management services: estate planning and advisory on holding structures;

fi nancial services: advisory on asset allocation, investment products, securities, discretionary portfolio

management;

expert advisory in specifi c fi elds: art, real estate and rural property in particular.

The Private Banking model is based on the notion of global advisory and

servicing along the whole wealth cycle. To provide its clients with products

and services that best fi t their individual needs, BNP Paribas Private Banking

has adopted an open architecture approach in terms of offering. It hence

creates wealth solutions sourced from the Group’s other businesses (Asset

Management, Securities Services, Insurance, Corporate Finance, Fixed

Income, Equity Derivatives, etc.), as well as external providers.

BNP Paribas Banque Privée employs over 4,300 dedicated professionals and

is present in over 30 countries, primarily in the major private wealth management

centres in Europe and Asia.

BNP Paribas Banque Privée is no. 1 in France with EUR 63 billion in client

assets and a reinforced network of 222 Private Banking Centres nationwide,

plus a wealth management department specialising in clients with more than

EUR 5 million in assets. It ranks no. 5 in western Europe, where it is rapidly

developing its presence in domestic markets (source: 2008 Euromoney rankings),

and is one of the Top 3 private banks in Asia (source: Asiamoney 2007

rankings).

At end-2007, BNP Paribas Banque Privée overall held over EUR 157 billion of

client assets on behalf of its clients.

Fast-paced expansion

and a clear improvement in profi tability

In a mixed context for the fi nancial industry, BNP Paribas Banque Privée

achieved a marked improvement in its results in 2007 and continued to develop

its commercial operations at a brisk pace.

Product development

Strong growth in transaction activity, driven by equities and increasingly

sophisticated structured products.

Signifi cant enhancement of the alternative investment offering with the

promotion of numerous private equity products (including PAI Europe V),

continued development in hedge funds and the expansion of real estate and

ethical funds (campaigns targeting sophisticated investors).

Continued development of discretionary management following the

expansion of the offering and innovative mandates carried out in 2007.

Overhaul of broker monitoring and validation procedures and development

of a product scoring system to comply with the European Markets in

Financial Instruments Directive (MiFID).

BNP Paribas Annual Report 2007 /////// Asset Management & Services

76_77


Responsible investment,

sustainable development

and philanthropy

are essential components of

the advisory and investment

services offered by

BNP Paribas Banque Privée.

A specialised team assists

clients with services such

as a foundation specifi cally

dedicated to helping

private clients with their

philanthropic ventures

and a range of innovative

investment funds focusing

on micro-credit, renewable

energies and waste or water

treatment.

For its larger clients,

mindful of the heritage

to be passed on to future

generations, the Private

Banking activity organises

a major conference on

philanthropy and sustainable

development each year. In

2007, the event was presided

over by Amartya Kumar Sen

(Nobel Prize for Economics)

and drew speakers as

diverse as Franck Riboud,

the Chairman of Danone,

Yann Arthus-Bertrand,

Alice Dautry for the Institut

Pasteur, Pamela Hartigan

of the Schwab Foundation

and Ronald Arculli of the

Hong Kong Stock Exchange.

This conference, which

has become renowned in

the world of philanthropy,

brings together private

clients of around 30 different

nationalities.

P r Amartya Sen

Customer development

Improving commercial organisation with a view to optimising the effi ciency

of the sales force. Enhancing the management tools used by front-line

commercial staff and adapting the offering to client needs through client

segmentation.

Setting up special Family Offi ce and Independent Asset Manager structures

in Europe.

Strengthening the Corporate Advisory approach, particularly in Italy and France.

Consolidating the organisation specialising in ultra high net work individuals

and expanding the product offering.

Developing the sales force, particularly in Asia.

Continued efforts to improve operating effi ciency

Adapting the Private Banking organisation to European MiFID rules and providing

clients with specialised assistance in this domain.

Launching a re-engineering programme aimed at improving the effi ciency of

processes in Private Banking as part of a quality drive.

Overhaul of operating and technology systems at the branch offi ce in Greece.

Continued development of asset management tools and improvement of

client reporting systems.

Continued strengthening of the risk monitoring system.

Sustained profi table growth momentum

In 2007, BNP Paribas Banque Privée continued to implement its strategy

focused on organic growth and targeted acquisitions.

The Private Banking activity signifi cantly broadened its international reach

again in 2007 in the world’s new wealth regions, notably Asia, thanks to the

intense recruitment of commercial teams.

Meanwhile, it continued to strengthen its positioning in southern Europe and

Benelux. In Italy, the internal joint venture model with the BNL bc network was

set up and should be running at full strength in 2008. In the Netherlands, the

acquisition of the private banking arm of KAS Bank by Nachenius Tjeenk, the

Dutch Private Banking subsidiary, underscoring BNP Paribas’ leading status

in this attractive market.

In France, BNP Paribas Banque Privée successfully acquired Dexia Banque

Privée France which was merged with BNP Paribas SA on 1 January 2008

and renamed Banque Privée Anjou. As a result of this major operation, the

Private Banking business confi rmed its leadership in the French domestic

market, a position which was further highlighted when it was awarded the title

of “Best Private Bank” by Euromoney magazine in January 2008.


BNP Paribas

Investment Partners

BNP Paribas Investment Partners combines all the Asset Management businesses of BNP Paribas.

A single platform providing simplifi ed and immediate access to a vast range of specialised partners, BNP Paribas

Investment Partners is one of the biggest names in Asset Management in Europe. At 31 December 2007, total

assets under management stood at EUR 344 billion (1) of which almost half were held on behalf of institutional

clients. With 2,000 professionals serving clients in more than 70 countries, BNP Paribas Investment Partners draws

on more than half a century of experience in Asset Management and has enjoyed strong growth over the last

decade, punctuated by targeted acquisitions and the creation of joint ventures.

This solid development refl ects a clear multi-specialisation strategy and a

partnership approach which has enabled BNP Paribas Investment Partners to

consistently enrich its product and service offering with the support of companies

who are experts in their particular fi eld.

BNP Paribas Investment Partners is present in the major fi nancial centres,

including Paris, London, New York, Tokyo and Hong Kong. It also has fi rst-rate

knowledge of new markets thanks to its teams in Brazil, South Korea, China,

India, Morocco and Turkey. With 250 client relationship managers in 30 countries,

BNP Paribas Investment Partners has a local presence that brings it closer

to its clients.

(1) Including assets under advisory

BNP Paribas, London

BNP Paribas Annual Report 2007 /////// Asset Management & Services

Record growth

for EasyETF

In just over two years,

EasyETF tracker assets

under management have

grown more than tenfold

to exceed EUR 4.6 billion

at the end of 2007 with a

high degree of popularity

in Asia. EasyETF trackers

have more than lived up to

their reputation as “off the

beaten track” trackers by

enhancing their offering

with numerous innovative

products including the fi rst

Islamic ETF on a global

equity index.

78_79


2007 was marked by the launch in May of BNP Paribas

Investment Partners, a brand which encompasses

all the expertise of BNP Paribas’ asset management

businesses.

This brand shows how, building on the existing know-how

of BNP Paribas Asset Management in fundamental asset

management, the business has progressively developed

new areas of expertise through a multi-specialisation strategy

based on setting up innovative partnerships with leading

specialists in each new domain.

BNP Paribas Investment Partners therefore combines

the best of both worlds: the fi nancial security and highly

effi cient control systems of a large organisation and the

proximity of a large distribution network, combined with

the responsiveness, specialisation and entrepreneurial

spirit of smaller asset management companies.

In 2007, this unique model once again enabled

BNP Paribas Investment Partners to achieve strong

growth, despite a sharp deterioration in market conditions

in the third quarter. Strong international development in

recent years has provided BNP Paribas Investment

Partners with a solid source of growth:

In Italy, where synergies between local teams and

BNP Paribas Asset Management teams in Paris resulted

in the successful launch and placement through the

BNL network of numerous structured products. At the

BNP Paribas, Mumbai

same time, the range of products distributed by BNL

was entirely reworked in 2007 to respond to the needs of

differing client categories;

The portfolio of managed assets in the Middle East grew

by more than 60% in 2007 thanks in particular to numerous

mandates from large institutions;

The “new markets”, particularly South Korea and Turkey,

enjoyed solid momentum which led to a greater than

50% increase in their managed assets. In addition to local

demand which remained very buoyant, foreign investors

showed a keen interest in these countries as they sought

to improve their geographical diversifi cation.

Impax, BNP Paribas

Investment Partners’

specialist in

environmental funds

BNP Paribas Investment

Partners has enriched its

range of products and

services by acquiring

29.4% of Impax, an asset

management company

specialised in environmental

markets and listed on the

London Stock Exchange.

The partnership between

the two companies began

eighteen months ago

with the launch of the

Parworld Environmental

Opportunities fund and will

be strengthened to cover the

management and distribution

of funds in certain parts of

Europe, Asia-Pacifi c and the

Middle East.

BNP Paribas Asset

Management confi rms

progress in the fi eld

of sustainable and

responsible investment

With more than

EUR 8 billion in assets under

management and advisory

at the end of December

2007, BNP Paribas Asset

Management is a major

player in sustainable and

responsible investment. This

commitment is illustrated

by the driving role played

by BNP Paribas Asset

Management in numerous

global initiatives focusing on

key issues such as climate

change and supporting

extra-fi nancial research.

Thus in 2007 BNPP AM

became a partner to the

Carbon Disclosure Project

after signing the United

Nations Principles for

Responsible Investment

at the end of 2006.

Furthermore, BNPP AM

holds the vice-presidency

of the Institutional Investors

Group on Climate Change

(IIGCC) and is a founder

member of the Enhanced

Analytics Initiative (EAI).

BNP Paribas Investment

Partners: unique

knowledge of new

markets

The asset portfolios

managed by partners of

BNP Paribas Investment

Partners in new markets

(Brazil, Argentina, India,

China, South Korea, Turkey

and Morocco) grew by more

than 50% in 2007, refl ecting

growing investor interest in

these regions. South Korea

stands at the top of the list

among these countries,

having reported record net

infl ows over the year. At the

end of December 2007,

BNP Paribas Investment

Partners was one of the

largest global players in

these new markets with

EUR 33 billion

in managed assets.


BNP Paribas, Madrid

BNP Paribas Investment Partners also continued to broaden its expertise

by setting up a new partnership with Impax, a company specialised in environmental

funds. Enriched by this recent addition, BNP Paribas Investment

Partners’ product and service offering has three main focuses:

Clearly defi ned expertise:

- fundamental asset management (BNP Paribas Asset Management);

- management of international rates, credit and structured credit instruments

(FFTW);

- management of environmental funds (Impax);

- alternative investment strategies (CooperNeff Alternative Managers,

Fauchier Partners);

- currency management (Overlay Asset Management);

- private equity (BNP Paribas Private Equity);

- multi-management (FundQuest).

Specialised teams devoted to specifi c investor categories:

- wealth management (Cardif Asset Management, BNP Paribas-Discretionary

Portfolio Management);

- company long-term savings and pension schemes (BNP Paribas Épargne

& Retraite Entreprises).

Pioneering entities in new fast-growing markets such as:

- Latin America (BNP Paribas Asset Management Brazil and BNP Paribas

Asset Management Argentina);

- China (SYWG BNP Paribas Asset Management);

- India (Sundaram BNP Paribas Asset Management);

- South Korea (Shinhan BNP Paribas ITMC);

- Turkey (TEB Asset Management);

- Morocco (BMCI Gestion).

BNP Paribas Investment Partners has also formed strategic alliances with a

view to offering:

- a complete range of trackers under the EasyETF banner;

- multi-currency AAA-rated money market funds under the Cash Funds

International banner.

BNP Paribas Annual Report 2007 /////// Asset Management & Services

BNP Paribas Asset

Management rethinks

the organisation of its

management teams

To optimise complementarities

among its various business

lines, BNP Paribas has chosen

a new organisational structure

built around three units:

Alpha management,

encompassing moneymarkets,

European fi xed

income, European equities,

US equities, Japanese

equities, and global and

emerging market equities.

SIGMA portfolio

management, which

includes structured

and capital-guaranteed

investment management,

index-linked portfolio

management and

ETFs, balanced fund

management and asset

allocation.

IBS (Investment

& Business Solutions),

proposing expertise and

solutions to assist all

investment management

teams in their bid to offer

new sources of added

value such as sustainable

and responsible

investment.

Increasing innovation

at BNP Paribas Épargne

& Retraite Entreprises

The fi rst French company

to adopt a global approach

to employee savings and

retirement schemes back in

2003, BNP Paribas Épargne

& Retraite Entreprises

strengthened its position

as the market benchmark

in retirement savings by

once again turning in an

excellent performance with

more than EUR 2.5 billion

in total infl ows. 2007 was a

year of major innovation with

the extension of the Vision

Globale e-service to stock

options and company shares

and the creation of websites

to handle transactions

relating to company

retirement savings schemes

and defi ned contribution

pension plans.

80_81


BNP Paribas Personal Investors

BNP Paribas Personal Investors offers independent fi nancial advice and a wide range of investment services

across multiple distribution channels to high net worth individuals. This business line brings together three

major players in the private investment fi eld:

Cortal Consors is the leading personal investment and online brokerage fi rm in Europe, providing personalised

investment advice and online trading services in fi ve European countries – Germany, France, Spain, Belgium

and Luxembourg. Cortal Consors offers clients its investment advisory experience through several channels

– online, telephone or face to face. It offers a broad range of independent products and services including

short-term investment solutions, mutual funds and life insurance products, backed by leading-edge online

brokerage technologies;

B*capital, a brokerage fi rm, specialises in personalised advice on securities and derivatives as well as

discretionary management for high net worth clients. It offers its clients direct access to all markets, fi nancial

analysis, personalised portfolio advisory and portfolio management services;

Geojit is one of the leading retail brokers in India. It offers brokerage services for equities, derivatives and

commodities as well as fi nancial savings products, mainly to private individuals. Geojit also operates in the

United Arab Emirates where it targets a non-resident Indian clientele. BNP Paribas is its main shareholder.

BNP Paribas, Madrid

At 31 December 2007, BNP Paribas Personal Investors had 1.56 million clients

and EUR 32.2 billion worth of managed assets, with 37% in equities, 43% in

savings products or mutual funds and 20% in cash. BNP Paribas Personal

Investors employs 4,147 people.

The goal of BNP Paribas Personal Investors is to be a leading broker in personal

investment and online trading services in Europe and in international markets

that offer strong savings potential, such as emerging markets.

Strategic development

BNP Paribas took a 27.18% stake in Geojit Financial Services Ltd and became

its main shareholder.

BNP Paribas Personal Investors, the new business line within AMS, was created

and includes Cortal Consors, B*capital and Geojit.

Cortal Consors Germany bought the Financescout24 advisory network and

doubled the number of mobile advisers from 80 to 160. This acquisition

strengthens the multi-channel strategy of Cortal Consors in Germany and

meets clients’ need for independent investment advice.

Cortal Consors Germany opened 15 new locations for its advisory unit Cortal

Consors Select, which now has 21 offi ces throughout Germany.

The Singapore Expatriates Desk offers investment services to European

expatriates in Asia with the support of Cortal Consors Luxembourg.

Geojit and BNP Paribas Securities Asia signed a joint venture to serve institutional

clients.

Geojit obtained a licence to operate in Saudi Arabia through a joint venture

Aloula Geojit Brokerage.

Geojit and Bank of Bahrain signed a partnership agreement to provide Indian

brokerage services and mutual funds to Indian nationals residing in Bahrain.


Awards

Cortal Consors was ranked no. 8 (no. 3 at the retail level)

in Institutional Investor magazine’s “Online Finance” listing

of the top international (non-US) fi nancial technology

innovators.

Cortal Consors Germany was elected “Online Broker of

the Year 2007” by more than 50,000 traders voting via

brokerwahl.de.

The German Institut für Vermögensaufbau (Institute for

Personal Asset Creation) has certifi ed the quality of management

of Cortal Consors Germany’s fund portfolios. The

institute gave the portfolios a fi ve star rating and noted

“the portfolios are excellently suited for asset creation”.

In France, Contrat Majeur + received two awards in Le

Revenu’s evaluation of life insurance contracts: the “Gold

Trophy” in the multi-products category and the “Interactivity

Award” for the fl exibility of its Smart Account.

Dun&Bradstreet ranked Geojit 5th among India’s equity

brokerage houses. Geojit is the leading broker in South

India.

Innovation in products and services

B*capital provides equity advisory services to Cortal

Consors clients in 4 European countries: Service Conseil

Expert B*capital for Cortal Consors France, Trading

Beratung in Germany, Stock Advice in Luxembourg and

Cuenta Assesorada in Spain. These services give access

to B*capital expertise on local and European equities and

combine three approaches: fundamental, technical and

quantitative.

Cortal Consors and B*capital were the fi rst in France to

allow trading on 150 SRD-eligible French securities from

8 am to 10 pm through Tradegate, an alternative trading

platform. The “best location order” is a free service which

allows clients to optimise their transactions. The intelligent

routing system automatically sends the client’s order to

the Stock Exchange offering the best price.

In light of the success

of the fi rst two “Investir

utile” initiatives in 2006,

Cortal Consors France

launched two new operations

in 2007. Clients were given

the opportunity to invest in

a selection of environmental

and sustainable funds with

reduced entry fees. 2% of

the amount collected was

used to fund a sustainable

development project in the

Hassan district of South

India. The main aim of this

project is to recycle waste

while producing energy

in the form of biogas and

compost for agriculture.

Cortal Consors Germany

was one of the three

founders of the Börsianer

Handeln initiative; the fi rst

project is the construction

of a school in Ushpa-Ushpa,

BNP Paribas Annual Report 2007 /////// Asset Management & Services

Cortal Consors France launched “Scenario Orders”

to programme order strategies: orders are only sent to

the market if and when the expected scenario(s) occur(s).

Among the Scenario Orders, the “Conditional Order” is

especially innovative as it allows clients to position themselves

on a stock based on the trend of another stock or

index.

Cortal Consors promoted a successful asset gathering

“Goldrush” campaign, both in Germany and in France:

clients received gold biscuits after transferring assets

from other banks to Cortal Consors.

Cortal Consors France offered “Garantie 12”, a new time

deposit account for investors looking for a safe, easy-touse

product with an interest rate which is guaranteed for

twelve months. The rate is updated each week on the

website.

Geojit launched a mutual funds online platform.

Cortal Consors Spain launched Cuenta Multiplica

to increase traders’ purchasing capacity via a credit line.

This product is focused on the most active investors and/

or those needing medium term leverage lending. In the

saving area, Cuenta Activa is a highly competitive, high

interest-bearing account offering liquidity and monthly

payment of interest.

Cortal Consors Belgium launched a structured product,

“Ultim8”, developed in cooperation with BNP Paribas in

Belgium.

Cortal Consors Luxembourg developed a highly secure

new website. From anywhere in the world, private investors

can check their accounts, perform transactions and

get access to information and help in decision-making in

three languages: English, French and German.

a small city in Bolivia. The

opening of the school is

planned for spring 2008 and

will have up to 1,600 pupils.

Geojit received recognition

from the Governor of Kerala

for its Corporate Social

Responsibility efforts:

working through the NGO

CASP, for the last two years

Geojit has been supporting

the education and

personality development of

350 children from 3 villages

in Kerala.

Geojit is the main sponsor

for Nanma, an initiative

providing educational

support to 1,000

underprivileged students

in Kochi (Kerala).

82_83


BNP Paribas Real Estate

With 3,500 employees, BNP Paribas Immobilier is continental Europe’s leading provider of real estate services

to companies and one of France’s major players in residential property.

It offers a range of services that is unrivalled in Europe, both in terms of its geographical reach and the diversity

of its business offerings.

Meunier Habitat

© Photo Library BNP Paribas Real

Estate: D. Boy de la Tour

European network

In commercial property, BNP Paribas Immobilier is active in 8 European

countries: France, the United Kingdom, Germany, Spain, Belgium, Luxembourg,

Italy and Ireland, and also has 2 offi ces in New York and Kiev.

In residential real estate, BNP Paribas Immobilier’s main activity is in France.

Four complementary real estate businesses

Transactions, advisory services, valuations

In commercial property, Atisreal markets offi ce space and industrial or business

premises and provides advisory services (space use, technical engineering,

market and location research, feasibility studies), and valuations:

no. 1 in France and Germany (1) ,

among the Top 10 in the United Kingdom (1) .

In residential property, the Espaces Immobiliers BNP Paribas network is one

of the major selling groups for new and previously-occupied residential units.

Property Management

BNP Paribas Real Estate Property Management manages 21.5 million sq.m.

of commercial property in Europe, including more than 10.5 million sq.m.

in France where it is the market leader (1) .

In residential properties, it manages more than 33,000 housing units, including

more than 5,500 units in serviced residences.

Property Development

Meunier is France’s 3rd-largest real estate developer (2) :

no. 1 in commercial properties with Meunier Immobilier d’Entreprise;

among the Top 10 in residential properties with Meunier Habitat.

Real Estate Investment Management

BNP Paribas Real Estate Investment Management and BNL Fondi Immobiliari

manage EUR 7,4 billion of assets in France, where the Group is one of the

leading SCPI property fund managers, and in Italy.

Sustained sales

and marketing momentum

and steady geographic expansion

2007 was another exceptional year for BNP Paribas Immobilier.

Organic growth in each of the four real estate businesses

½ Transactions, advisory services, valuations

During this record year for commercial property, Atisreal found occupants for

more than 7 million sq.m. in Europe, completed 380 investment transactions

totalling EUR 11 billion and carried out more than 86,000 valuations. Growth

was reported in all regions, but the French and German businesses performed

(1) Data published by competitors.

(2) “Classement des promoteurs” published by Innovapresse in June 2007.


particularly well, reinforcing both market share and leadership

positioning. In the residential segment, Espace Immobiliers

sold close to 3,400 new and existing properties.

½ Property Management

2007 saw the adoption of the BNP Paribas Real Estate

Property Management brand in all countries covered by

the business. The commercial property portfolio under

management expanded by 5.3 million sq.m. to reach a

total of more than 21.5 million sq.m.

½ Property development

2007 was a year of very strong activity:

Meunier Immobilier d’Entreprise turned in an outstanding

performance, pre-selling or pre-leasing more than

460,000 sq.m. of office and warehouse space

(270,000 sq.m. of offi ce premises and 190,000 sq.m.

of warehouse space).

Meunier Habitat started construction of 2,500 housing

units and was awarded projects covering a total of

4,000 units to be built in the coming years.

½ Real Estate Investment Management

2007 was marked by:

the development of the partnership between BNP Paribas

REIM in France and BNL Fondi Immobiliari in Italy;

the launch of the fi rst “SCPI Borloo” (property investment

trusts) in France;

the signing of a brokerage agreement with PMA, a

BNP Paribas Assurance subsidiary, to develop distribution

channels for property products.

Headoffi ce of Casino group in Saint-Etienne, France,

developed by Meunier Immobilier d’Entreprise

BNP Paribas Annual Report 2007 /////// Asset Management & Services

European development

A number of signifi cant acquisitions had taken place in

2006, mainly in the United Kingdom and Spain.

In addition to the excellent commercial results, 2007 was a

year of consolidation and continued European expansion

for BNP Paribas Immobiler, with the development of:

two pan-European teams to assist large clients in relation

to their international strategies:

- a team dedicated to international investment;

- a team devoted to international corporate clients (ICS);

a team specialising in acquisitions and development to

facilitate the geographical expansion of the network;

cross-sector European working groups to develop

cross-selling and to pool commercial resources. The IT

Revolution project was also launched. The project aims

to provide BNP Paribas Real Estate in the immediate

term with up-to-the-minute IT systems so as to enable it

to optimise its resources;

international mobility to enhance employee career

opportunities.

BNP Paribas Immobilier

promotes sustainable

development

As a civic-minded company

committed to environmental

protection, BNP Paribas

Immobilier actively supports

sustainable development

in all of its businesses.

Here are just a few

of its initiatives:

in Property Development,

by earning environmental

labels for a large number

of its commercial

and residential real

estate operations

(“High Environmental

Quality”, “Very High

Environmental Quality”,

”BREEAM” and “Habitat

and Environment”

certifi cation, etc.);

in Property Management,

by ensuring that

its suppliers and partners

sign its “Eco Property

Management”

quality charter;

in Transactions, Advisory

Services, Valuations,

through the efforts

of the working group

“Next Offi ce by Atisreal”

to conceptualise

the offi ce of the future

and through the “See

and Think” initiative

in the United Kingdom.

BNP Paribas Immobilier’s

environmental initiatives

are at the heart

of its strategy, and involve

all of its businesses

and subsidiaries, as testifi ed

by its architectural

sponsorship and the recent

publication of a glossary

of sustainable development

terms in French and English.

84_85


BNP Paribas Assurance

BNP Paribas Assurance designs and markets its products and services under two brands: BNP Paribas for

products distributed by the BNP Paribas network in France and Cardif for the other networks and distribution

partners in France and international markets.

It operates in 42 countries including 25 in Europe, 7 in Asia, 6 in Latin America, 2 in North America and 2 in Africa.

The savings business includes the sale of life insurance policies to individuals in 11 countries. In France, it offers

companies Group pension products, end-of-career bonuses and early retirement benefi ts.

In the protection business, it offers a broad range of products in 33 countries, including creditor insurance,

bill protection, credit card protection, extended warranty, gap insurance and individual protection. In France,

BNP Paribas Assurance markets both standard and personalised Group policies to large companies and SMEs.

The property and casualty insurance business in France is provided through Natio Assurance, a company that

is owned equally with AXA. The products offered cover a wide range of risks and include comprehensive home

insurance, automobile insurance, educational insurance, travel insurance, and legal protection coverage.

BNP Paribas Assurance’s partners comprise 35 of the world’s 100 leading

banks and a large number of fi nancial institutions, including consumer credit

companies, credit subsidiaries of car makers and major retail groups.

BNP Paribas Assurance is the 4th-largest life insurer in France (source: FFSA)

and a world leader in creditor insurance (1) .

International market boots growth (2)

In 2007, BNP Paribas Assurance reported total revenues of EUR 18 billion, an

increase of 5% in relation to 2006.

In France, 2007 net infl ows came in close to the 2006 level despite 2006 having

been an exceptional year thanks to momentum generated by the Fourgous

amendment and the change in tax regulations on PEL home savings plans.

Revenues reached EUR 11 billion, of which EUR 10.1 billion was generated

by the savings business and EUR 0.9 billion by the protection business (welfare

and non-life).

As a result, BNP Paribas Assurance outperformed the French insurance market

(down 3% in 2007, source: FFSA) and the French bancassurance market (down

7%, source: Groupement Français des Bancassureurs) in terms of growth in

net infl ows relative to 2006. This indicates that BNP Paribas Assurance has

won market share from other bancassurers.

This performance mainly refl ects very strong commercial momentum in

BNP Paribas branches and an increase in payments made by Private Banking

customers in France.

BNP Paribas Assurance also remained the leader in the independent fi nancial

advisors market in 2007 thanks notably to the quality of its service.

In a less healthy fi nancial market environment, BNP Paribas Assurance

maintained its no.1 position in total unit-linked infl ows (source: FFSA).

Meanwhile the protection business turned in a very robust performance (up 8%),

thanks mainly to personal protection products.

(1) In-house study based on information published by competitors.

(2) Information relating to BNP Paribas Assurance is provided on a pro forma basis and includes the 2006 and 2007 life

insurance revenues generated by BNL Vita, a joint venture between Unipol (51%) and BNL (49%). At end-2007,

the portion of revenues contributed by BNL Vita to BNP Paribas Assurance stood at EUR 1.3 billion

SRI

BNP Paribas Assurance is

committed to working towards

the application of socially

responsible investment (SRI)

criteria to its investment

decisions. BNP Paribas

Assurance is the fi rst private

investor in France to have its

euro fund reviewed by Vigeo,

the European leader in

extra-fi nancial analysis.

The analysis covered the

six SRI domains: human

resources, business

behaviour, human rights,

environment, corporate

governance and community

involvement.

The company directly

manages EUR 45 billion in

assets, giving it signifi cant

leverage to exercise its social

responsibility and offer the

benefi ts of its SRI policy to

nearly 1.3 million clients via

the euro fund components

underlying their life insurance

contracts.


Car-pooling

The employees of

BNP Paribas Assurance

expressed their interest in

environmental issues during

a consultation session which

generated 150 proposals,

including car-pooling.

In a bid to encourage this

environmentally-friendly

practice, the company has set

up a car-pooling website for

its employees. Additionally,

BNP Paribas Assurance

supports its employees’

efforts by fi nancing the

planting of fi ve trees through

the Cœur de Forêt association

for every employee that

registers with the scheme

via the website.

Providing sick people

with greater access

to insurance

BNP Paribas Assurance,

the world leader in creditor

insurance, has taken steps

to provide sick people with

greater access to insurance

in line with the AERAS

agreement (S’Assurer et

Emprunter avec un Risque

BNP Paribas Annual Report 2007 /////// Asset Management & Services

At the international level, BNP Paribas is now present in 41 countries under

the Cardif banner which reported total revenues of EUR 6.9 billion in 2007, an

increase of 14% on the previous year.

In 2007 BNP Paribas Assurance reinforced its already strong positioning in

regions that offer extensive opportunities for development in bancassurance:

Croatia, Colombia, Scandinavia and Turkey.

The international savings activity registered revenues of EUR 4.6 billion, up 20%

on the previous year.

Europe, which now accounts for 75% of savings deposits outside France, posted

substantial revenue growth in 2007 thanks in particular to products sold in

the United Kingdom.

Elsewhere the savings business continued to thrive both in developed countries

like South Korea and Taiwan and fast-growing countries like India.

Thanks to a comprehensive and innovative offering and a benign macroeconomic

and sociological environment, the protection business generated total

revenues of EUR 2.3 billion outside France.

2007 was marked by very prosperous conditions in countries such as Spain

(up 48% versus 2006), Italy (up 26% versus 2006), Argentina (up 63% versus

2006) and Brazil (up 87% versus 2006).

Aggravé de Santé –

borrow and obtain insurance

with an elevated health risk).

As a result, the company

launched an offering

dedicated to asthmatics in

November 2007. The offering

simplifi es the application

process and has a special

price scheme that takes

into account the health

of the policyholders based

on regular medical checks,

self-monitoring, etc.

Micro-insurance in India

SBI Life, a joint venture

between BNP Paribas

Assurance and the State

Bank of India, has launched

Grameen Shakti and Grameen

Super Suraksha, two microinsurance

life products

designed for self help groups

(groups of people belonging

to the poorest populations

in India, 90% created by

women).

These products are

distributed through the

SBI branch network as

well as through NGOs and

microfi nance establishments.

They enable vulnerable

populations to obtain life

cover at very advantageous

prices (from less than

EUR 1 per annum).

BNP Paribas Assurance

takes part in the fi fth

Sustainable Development

Week

From 2 to 6 April 2007 the

Sustainable Development

Week provided

BNP Paribas Assurance with

an opportunity to invite its

2,500 head offi ce employees

to take part in a series of

conferences and events

dedicated to this theme.

Underscoring global

warming and the threats

to biodiversity, the week

included a viewing of the

documentary An Inconvenient

Truth and a presentation

given by astrophysicist

Hubert Reeves. Also under

discussion were sustainable

development as a business

model and the environmental

programmes of the main

French presidential

candidates.

Employees particularly

appreciated this “corporate

citizenship” initiative

and welcomed the

awareness-raising

campaign.

86_87


BNP Paribas

Securities Services

BNP Paribas Securities Services (1) is the leading European provider of securities services to companies, asset

managers and fi nancial institutions worldwide. BNP Paribas Securities Services provides innovative solutions

to satisfy the specifi c needs of its clients at every stage of the investment cycle:

Financial intermediaries (banks, broker-dealers) are offered customised services for settlement/delivery and

global custody for all asset classes as well as outsourcing solutions for middle and back offi ce activities;

Institutional investors (fund managers, hedge funds, insurance companies, pension funds, sovereign funds

and alternative funds) have access to an array of custodial and fund administration services, including fund

distribution support, transfer agency services, depobank and trustee service, fund accounting, middle-offi ce

outsourcing and risk and performance measurement;

Issuers are provided with a wide range of services, including administrative services, securitisation and stockoption

and employee-shareholder plan management.

ClearSuite

BNP Paribas Securities

Services’ latest solution to

its clients’ ever-increasing

challenges is a fully integrated

broker-dealer service solution,

ClearSuite. ClearSuite offers

fi nancial intermediaries

worldwide, world-class

clearing and custody

services with a full range

of outsourcing capabilities

from execution to post-trade

administration.

AREVA

BNP Paribas Securities

Services was appointed by

AREVA to provide custody

and valuation services and

to measure the performance

of the asset portfolio

dedicated to funding the

dismantling of nuclear

power stations.

This new mandate

further strengthens

BNP Paribas Securities

Services’ relationship with

AREVA, to which it already

provides depository services.

As at 31 December 2007, assets under custody totalled EUR 3,801 billion

and assets under administration EUR 834 billion. The number of transactions

settled in 2007 reached 45 million.

BNP Paribas Securities Services is ranked no. 1 among European custodians,

among the top fi ve worldwide, and no. 1 in terms of the percentage of

cross-border assets (source: globalcustody.net).

Close to two-thirds of BNP Paribas Securities Services’ revenues are generated

outside France. The business is present in all the main European fi nancial

centres – including Belgium, Greece, Guernsey, Ireland, the Isle of Man,

Italy, Jersey, Luxembourg, the Netherlands, Portugal, Spain, Switzerland and

the United Kingdom, as well as in Australia, New Zealand, Turkey (via TEB),

Japan, the Cayman Islands, the United States and Singapore.

Accelerated growth driven

by organic development,

targeted acquisitions,

extended geographical footprint

and innovative products

BPSS is always seeking opportunities to strengthen its leading positions in

existing markets and to move into new markets. 2007 was a resounding success

in terms of expansion, with three key acquisitions and operation launches

in four new countries. As a result, BNP Paribas can now boast on-the-ground

service delivery capability in all major global time zones and regions.

Targeted Acquisitions

In June, BNP Paribas Securities Services bolstered its presence in the Spanish

market with the acquisition of Exelbank, a dedicated provider of middle and

back offi ce service solutions for a broad base of both Spanish and international

clients. The acquisition of Exelbank further strengthens an already solid

position in one of Europe’s major investment markets.

(1) BNP Paribas Securities Services includes all securities operations developed by BNP Paribas Securities Services,

BNP Paribas SA and their subsidiaries.


June’s acquisition of RBS International Securities Services

completes BPSS‘ coverage of UK offshore markets and

reinforces its broad-based offshore market expertise.

RBS International Securities Services is a market leader

in securities-related services and its addition consolidates

BPSS’ position in both traditional and alternative asset

servicing.

In October, BNP Paribas Securities Services acquired

RasBank’s third party depository bank business, making

BPSS a market leader in services for Italian funds of

hedge funds. This acquisition brings its presence in Milan

to more than 350 employees and assets under custody

to over EUR 300 billion, underscoring BPSS’ commitment

to providing best-of-class services to Italian institutional

investors and to asset managers and pension funds in

particular.

Geographical expansion

BNP Paribas Securities Services’ investment in four new

markets is in line with its aim of operating on-the-ground

in order to be closer to the markets and its clients, thereby

offering a unique multi-local model.

The opening of a Singapore offi ce fully establishes

BNP Paribas Securities Services in Asia. BPSS’ global

clients can now benefi t from its local expertise and

knowledge in this strategic region.

BNP Paribas Securities Services launched operations in

Poland and Hungary, providing local clearing and settlement

solutions in these markets.

BNP Paribas Securities Services bolstered local custody

and clearing services in Turkey with the launch of a dedicated

securities services business line, offered through

BNP Paribas’ partner TEB (Türk Ekonomi Bankasi).

With their combined resources, BNP Paribas Securities

Services and TEB boast a custody and clearing offering

that benefi ts from over ten years of experience in the

Turkish market.

BNP Paribas Securities

Services – NYFIX’s

partner of choice

for Euro Millennium

BNP Paribas Securities

Services was selected

to provide pan-European

integrated post-trade services

for NYFIX’s Euro Millennium.

Euro Millennium is at the

forefront of liquidity solutions,

providing rapid, anonymous

matching for equity trading

in European markets.

This cornerstone deal

with a leading provider of

technology and services

reinforces BNP Paribas

Securities Services’ position

in the emerging and

increasingly important

Multilateral Trading Facility

segment.

BNP Paribas Annual Report 2007 /////// Asset Management & Services

Product Leadership and Innovation

The implementation of the November MiFID directive

within the European Economic Area saw the introduction

of new multilateral trading facilities (MTFs). BNP Paribas

Securities Services reacted to the important market

changes by providing MTF trading members with an

innovative bespoke operating model, as an extension

to the comprehensive services provided to the fi nancial

intermediaries segment.

As the fi rst General Clearing Member and the leading

clearer of trades for Europe’s fi rst MTF to go live, Chi-X,

Paribas Securities Services strengthens its relationship

with leading banks and brokers for third party services.

These services were added to the existing global clearing

and settlement offering launched as ClearSuite in 2007.

BPSS’ alternative fund servicing business has grown

steadily across both onshore and offshore markets by

servicing all asset classes and being able to offer the

regulatory environment best suited to clients’ needs.

BNP Paribas Securities Services’ customers have a

full-service partner recognised for its quality and ability

to deliver complex solutions to accompany them in

their growth. Our on-the-ground presence in all major

European centres allows BPSS to serve fund distributors’

and promoters’ pan-European distribution needs.

BNP Paribas Securities Services offers unique tailormade

reporting solutions in line with institutional investors’

needs and fully adapted to an increasingly complex

regulatory environment. BPSS’ cutting edge reporting

capabilities optimise performance measurement and risk

management by giving access to the most advanced,

comprehensive, yet user-friendly, analysis.

All clients have access to teams specialised in customised

fi nancing, securities lending and foreign exchange.

88_89


Klépierre

A real estate investment company listed on Euronext Paris, Klépierre develops, owns and manages

shopping centres in 10 European countries, mainly France, Spain and Italy. Klépierre is continental

Europe’s 2nd-largest listed property group specialised in shopping centres, with a market capitalisation of

EUR 4.8 billion. Its property assets totalled EUR 11.3 billion at year-end, of which 86% consisted of shopping

centres, 4% business premises – through its 84.1% holding in Klémurs – and 10% offi ce space in the Paris

region. More than 43% of Klépierre’s business is conducted outside France.

Klépierre’s strong momentum in the shopping centre activity is supported by the centralised management and

development capabilities of its subsidiary Ségécé, which is continental Europe’s no. 1 manager of shopping

centres. Ségécé manages 342 centres – 240 of which belong to Klépierre – through a network of 8 subsidiaries.

Through Klémurs, listed on the Stock Exchange since December 2006, Klépierre is playing an active role in

the sale and leaseback of property portfolios by major retailers.

Klépierre also owns and manages upmarket offi ce premises located in Paris and its inner suburbs. This is a

secondary activity for Klépierre, the result of opportunities arising in the course of market cycles.

The Klépierre Group has more than 1,100 employees.

Champ de Mars in Angoulême

(France)

Klépierre strives to design

energy-effi cient buildings by

incorporating a bioclimatic

approach and benefi ting

from its teams’ experience

in managing real estate

assets. It also systematically

investigates the potential

offered by renewable

energies, based on each

site’s characteristics.

In line with this strategy,

Klépierre has decided

to install 900 sq.m. of

photovoltaic solar cells in

the planned extension of

the Nîmes-Étoile shopping

centre, which will open

in 2008, representing

an investment for Klépierre

of EUR 320,000.

Klépierre continued to expand at a vibrant pace in 2007, investing a record

sum of EUR 1,078 million:

An amount of EUR 949 million was invested in shopping centres, primarily in

France (EUR 534 million), Hungary, Poland and Portugal. Nearly 40% of the

investments concerned projects underway for new centres and extensions, in

line with Klépierre’s strategy of increasing proprietary development capacities

in France and abroad.

Investments made by Klépierre’s subsidiary Klémurs amounted to almost

EUR 65 million. While pursuing the partnership agreement signed with Buffalo

Grill in August 2006, Klémurs also diversifi ed its portfolio by initiating other

sale and leaseback transactions.

Klépierre invested EUR 15 million in the offi ce property market, pressing

ahead with the construction of the Sereinis building, which is located just

outside Paris in Issy-les-Moulineaux and was acquired at the project stage in

2006. Pursuing the selective portfolio management policy launched in 1999,

Klépierre sold four buildings for EUR 75 million.

Lastly, Klépierre bought up the minority stakes in Ségécé held by BNP Paribas

and AXA Reim of 15% and 10% respectively.

In 2007 Klépierre’s strategy of increasing proprietary development capacities

both in France and abroad led to the setting up of international development

teams modelled on the expert teams already in place in France. With a view to

enhancing domestic growth opportunities, Klépierre relocated its French development

teams to the regions so as to maximise their presence in the fi eld.

Alongside its external expansion, Klépierre reported vigorous organic growth

in lease income. Against a backdrop of brisk consumer spending, revenues

from the Group’s shopping centres continued to rise with rental reversions

amplifying the major impact of index-linked rent adjustments. In the offi ce premises

segment, lease renegotiations carried out under favourable conditions

also contributed to strong underlying revenue growth.


2007 was characterised by the following major developments:

the acquisition of three shopping centres in Poland (Rybnik and Sosnowiec in

May and Lublin in July);

in July, the acquisition of the extension projects and the two Leclerc hypermarkets

bordering the existing shopping centres of Blagnac and Saint-Orens

(Toulouse), owned by Klépierre since 2004;

the three-for-one split on 3 September;

in September, the signing of an agreement to acquire the Corvin shopping centre

construction project in the heart of Budapest (Hungary) and the opening of a shopping

centre developed by Ségécé and located in the centre of Angoulême (France);

the strengthening of Klépierre’s capacity to fi nance its investments via a

seven-year syndicated loan for an amount of EUR 1 billion.

After three years of sustained gains, Klépierre’s share price, like that of all listed

companies in the real estate sector, suffered from a sharp correction in

2007 amidst the less favourable economic and fi nancial conditions that have

prevailed since the summer fi nancial crisis.

BNP Paribas

Principal

Investments

BNP Paribas Principal Investments includes BNP Paribas Capital and

Listed Investment and Sovereign Loan Management.

BNP Paribas Capital

BNP Paribas Capital manages the Group’s proprietary portfolio of unlisted

investments outside of the banking sector.

This portfolio had an estimated value of EUR 3.9 billion at 31 December 2007

and is split into four segments:

directly held strategic investments;

directly held minority stakes;

investments in funds;

joint investments made simultaneously with funds or institutional investors.

In 2007, the main disposals concerned the interests in Bouygues Telecom,

Vivarte and Elis. The Group forged ahead with its investments in private equity

funds and its joint investments alongside these funds.

Listed Investment and Sovereign Loan Management

The Listed Investment and Sovereign Loan Management unit has two functions.

Its overall mission is to derive the greatest possible value from its assets over

the medium term. This perspective clearly differentiates the business from a

trading activity.

The Listed Investment Management team is in charge of BNP Paribas’ portfolio

of minority stakes in listed companies.

Sovereign Loan Management’s mission is to restructure sovereign loans through

the London Club and to manage the portfolio of emerging market sovereign

debt, such as Brady bonds, Eurobonds and restructured loans.

BNP Paribas Annual Report 2007 /////// Klépierre – BNP Paribas Principal Investments

90_91


GROUP’S CORE VALUES

BNP Paribas Group’s

core values

Since its creation, BNP Paribas Group’s four core values of

responsiveness, creativity, commitment and ambition have

guided its behaviour and that of its employees in all business

lines and countries, in the service of customers, shareholders

and society at large. These core values are embodied in

BNP Paribas’ slogan “the bank for a changing world” and in its

logo of four stars taking fl ight, which symbolises progress and

is now the banner for over 6,000 branches worldwide.

The core values are a source of motivation and help to ensure cohesion in a

Group known for its diversity. Managers systematically refer to these values

when assessing employee performance, and the HR communications

teams are frequently asked to share their experiences and demonstrate

best practices in this regard.

More than half of BNP Paribas’ current employees were not yet with the Group

at the time of its founding merger. With this in mind, a global communication

campaign was organised in spring 2007, in 18 languages, to remind recent

recruitees of the importance of the core values in encouraging a cohesive

group-wide culture.


RESPONSIVENESS CREATIVITY COMMITMENT AMBITION

Speed in

assessing

new situations

and developments

and identifying

opportunities

and risks

Effi ciency

in decision making

and in action

Encouraging

initiatives

and new ideas

Recognising

contributions

Commitment

to the service

of clients and

collective

accomplishment

Exemplary

behaviour

Aiming for

challenge

and leadership

Succeeding

as a team

in a competition

where the client

is referee

92_93


Human Resources

development

The full report of this part is available in the Report on BNP Paribas’ social and environmental responsability

on the following website: www.bnpparibas.com (Sustainable Development section).

The people of BNP Paribas

Workforce expansion (1)

Group staff expanded to 162,687 full-time equivalent

employees (FTEs) at 31 December 2007, up 20,776 on

2006. The increase was a reflection of development across

all businesses, but was primarily due to external growth in

specialised fi nancing solutions.

The consolidation of LaSer-Cofi noga and the acquisition of

the Indian brokerage fi rm Geojit accounted for 7,496 and

2,464 extra employees respectively. At constant scope,

organic growth gave rise to 8,174 FTEs (1,291 in France

By geographical area

Africa 4.1%

North America 9.2%

South America 2.0%

Asia 5.4%

Europe 38.4%

France 39.4%

Middle East 1.0%

Oceania 0.4%

½ Workforce in france and outside france

The percentage of employees outside France continued

to grow. Less than 40% of the Group’s total headcount at

31 December 2007 was located in France.

½ By business

Compared with 2006, the portion of employees in IRS

and AMS increased, while it decreased in French Retail

Banking and BNL.

and 6,883 in other countries), primarily in International

Retail Services (IRS), Asset Management and Services

(AMS) and Corporate and Investment Banking (CIB).

Outside France, the majority of territories created net new

jobs in 2007. Northern Europe was particularly buoyant,

especially Ukraine, Poland, the United Kingdom and Russia.

Net increases also occurred in the Mediterranean zone, in

Spain, Portugal, Turkey, Egypt, Algeria and Morocco.

The Group’s workforce breaks down as follows:

(1) For human resources growth data, this analysis takes into account all FTE staff managed by BNP Paribas as opposed to the consolidated workforce, which is limited to staff working for

fully or proportionally consolidated entities calculated pro rata to the percentage consolidation of the subsidiaries concerned:

Full-time equivalents (FTEs) 2002 2003 2004 2005 2006 2007

Consolidated workforce 87,685 89,071 94,892 101,917 132,507 145,477

Total workforce 92,488 93,508 99,433 109,780 141,911 162,687

2005 2006 2007

France 55,499 57,123 64,080

Europe (excl. France) 25,205 53,461 62,473 (*)

North America 14,979 14,810 15,046

Asia 4,785 5,571 8,833

Africa 5,661 6,201 6,692

South America 2,363 2,924 3,287

Middle East 868 1,308 1,700

Oceania 420 513 576

Total

(*) Of which Italy accounts for 19,901.

109,780 141,911 162,687

By business

IRS 43.0%

FRB 19.4%

AMS 14.7%

CIB 9.7%

BNL 9.4%

Group

functions 3.1%

Klépierre 0.6%


Age pyramid

The Group’s age pyramid (1) remains balanced overall. Lower age groups predominate

in the IRS, AMS and CIB Divisions, while the opposite is true of

French Retail Banking and BNL, which remain closer to standard employment

demographics in continental Europe.

Physical headcount (December 2007)

17,226

13,529

6,090

8,746

8,430

8,354

9,504

8,700

1,533

Promoting diversity in all its forms

and fi ghting discrimination

The Group’s diversity policy focuses on guaranteeing equal opportunity and

the principle of non-discrimination, in particular as regards the recruitment of

visible minorities. Other key priorities include stepping up recruitment of disabled

people and improving the actions already in place to help them remain

employed, increasing the number of female senior executives, and fostering

diversity in terms of age. The principle of non-discrimination has been clearly

outlined in BNP Paribas SA’s internal rules since 2003.

As a concrete manifestation of the importance it gives to diversity, BNP Paribas

has formalised its policy by signing core charters that exist in this domain.

The Group has also set up a dedicated management structure, takes part

in regular discussions on diversity, and makes active commitments through

specifi c business partnerships. As such, BNP Paribas offers signifi cant tools

and initiatives to deal with major diversity challenges, in particular the fi ght

against discrimination, the promotion of gender equality and the integration

of disabled people.

½ A Group-wide diversity policy

Women : 82,112 (53.4%) Men : 71,536 (46.6%)

1,631

4,241

7,653

9,468

8,135

7,982

9,326

11,615

11,485

BNP Paribas is one of 40 French companies to have signed France’s Diversity

Charter. In a January 2006 review by HALDE (Haute Autorité de Lutte contre

les Discriminations et pour l’Égalité), the French high authority fi ghting against

discrimination and for equality, BNP Paribas was not found to discriminate in

recruitment.

On 13 December 2006, the Group also signed the charter proposed by the

French Education Minister, by which French companies commit to promoting

equal opportunity in education. The purpose of this charter is to strengthen

links and develop initiatives between businesses and schools. It is the most

recent in a long line of initiatives taken by BNP Paribas is this regard and

boosts its already strong commitment to the world of education.

(1) This pyramid has been based on total headcount without weighting for part-time work using individual company data

available, representing 94% of the Group’s headcount.

BNP Paribas Annual Report 2007 /////// Human Resources development

60 and over

55 to 59

50 to 54

45 to 49

40 to 44

35 to 39

30 to 34

25 to 29

under 25

Baudouin Prot,

Chief Executive Offi cer

of BNP Paribas

Promoting diversity (*)

Diversity is one of our key

strengths. We need

to develop it further, to be

even better at being the

bank for a changing world

– a bank that partners its

customers and employees

through the changes and

challenges of the 21st

century. Our Group welcomes

all talented individuals,

regardless of origin. The

only way their capabilities

should be assessed is by

appraising contributions

made and competencies

demonstrated at every stage

in their career development.

In addition to being illegal,

any discriminatory practices

would run counter to

the basic respect each

person is entitled to and

could seriously damage

our reputation. Under no

circumstances can they be

allowed.

BNP Paribas is a very

important employer and

bank in some strongly

multi-cultural areas, notably

in France. In our banking

and financial services,

bringing together people

from different backgrounds

is a source of creativity,

innovation and effi ciency.

We will also be closer to our

customers if the composition

of our staff mirrors the mix in

society around us. Promoting

diversity is therefore, for

BNP Paribas, a matter of

both performance and

social responsibility. Each

of us is invited to contribute,

on a day-to-day basis, to

advancing this goal.

* Excerpt from a letter from the Chief

Executive Officer to all employees.

94_95


The Group has also shown its commitment to diversity by

signing the Apprenticeship Charter in France in 2005 and,

in 2007, an agreement with Agefi ph, the French association

promoting the integration of disabled people within

the workforce. This agreement focuses on four main

areas: (i) establishing the “Group Project Handicap” team,

through local contacts and a recruitment and assistance

programme; (ii) raising awareness and offering training to

the main players in the recruitment process and facilitating

integration with the help of internal communications;

(iii) recruiting disabled workers for fi xed-term or permanent

contracts, work placements, temporary work or

work/study programmes; and (iv) stepping up the current

efforts made to keep disabled workers in the workforce.

BNP Paribas has also signed agreements to promote

gender equality in the workplace and carries out frequent

initiatives to offer women and men the same career

opportunities and eliminate the “glass ceiling”. At subsidiary

level, Cetelem was once again awarded certifi cation

for workplace equality during the year, and in December

2007 GIE BNP Paribas Assurance signed an agreement

on workplace gender equality.

½ A dedicated management structure

A Head of Diversity at Group level

In 2005, a Head of Diversity was appointed within BNP

Paribas’ Group Human Resources function, responsible for

Percentage of local staff employed by geographic area

(*) Europe (excluding France).

North

America

98.6%

France

99.9%

Other

territories

98.2%

defi ning overall policy and coordinating non-discrimination

action plans, promoting equal opportunity and increasing

the number of women and foreign nationals among senior

executives. The Head of Diversity’s duties also include overseeing

the Group’s policy in favour of disabled employees

and disseminating the Group’s policies in this regard.

A Diversity Committee, established in September 2007,

coordinates the initiatives of the core businesses and shares

good practices.

An anti-discriminatory promotion process

Since 2005, the Group has requested that the HR function

pay particular attention to non-discriminatory practices with

regard to promotions. A manager must be able to guarantee

that there has been no discrimination of any kind (ageism,

racism, sexism) at any stage of the nomination process.

The proportion of female employees receiving promotion

is one of the indicators that is regularly monitored (See

Registered Document, NRE Appendices – Social Chapter,

indicator 19, p. 256).

International teams

By employing local people, BNP Paribas directly contributes

to the development of the countries in which it operates and

therefore is naturally integrated into the different cultures and

communities concerned. Local employees can thus gain

access to senior positions within subsidiaries and branches,

and can pursue careers within the Group.

Europe (*)

99.0%

Asia

96.6%


Raising awareness through internal communication

The company takes a proactive approach to awareness-raising and has made

ambitious commitments that are monitored on a quarterly basis using a set of

indicators. Company-wide agreements signed in 2006 and 2007 are also monitored

at regular intervals to ensure that they have been correctly applied.

An internal diversity review was carried out in 2006, involving interviews with

more than 30 HR managers in France and abroad. The aim of this review was

to (i) discover how the different BNP Paribas territories and entities view diversity;

(ii) gain an insight into the various challenges and priorities of each of these

territories and entities; (iii) assess the current state of affairs; and (iv) identify

best practices that can be shared across the Group. In recent years, Englishspeaking

countries, for example, have been developing a range of endeavours

in favour of diversity with particular attention to raising awareness through internal

communication and training.

Diversity is frequently discussed in internal paper, electronic and audio communications,

which are widely disseminated throughout the Group and easily

accessible. The visuals used for external recruitment and communication campaigns

also feature diversity so that visible minorities do not feel that they cannot

step forward.

At Group level, information on diversity has been published on the intranet

and in the weekly newsletter accessible to all employees. Topics have included

news of the launch of the documentary Plafond de verre (the glass ceiling)

sponsored by IMS, an association of French companies – of which BNP

Paribas is a member – that promotes corporate social responsibility; the results

of the test performed on BNP Paribas recruitment processes by HALDE; and

regular updates on Projet Banlieues, which addresses issues of employment

and social inclusion in France’s underprivileged suburbs. Several sites outside

France, in particular in London, in Canada and within Bank of the West, have

implemented internal communication strategies underscoring their commitment

to diversity.

Since October 2007, the recruitment page of BNP Paribas’ French website

offers applicants a fuller presentation of the Group’s approach to diversity:

http://recrutement.bnpparibas.com/fr/qui-sommes-nous/diversite.asp

Special training

Diversity and non-discrimination are frequently examined at conventions for

senior executives, seminars and HR committee meetings.

The diversity training module for the HR function was established on the basis of

a diagnostic review by IMS on recruitment methods. This review was completed

in 2007 and consisted of individual and group interviews with more than 70 people

within the Group, including recruitment managers, individual managers and

line managers.

In France, training provided to almost 300 career and recruitment managers

focused on the analysis of stereotypes, the presentation of BNP Paribas’ diversity

policy, and legal issues, in order to facilitate the day-to-day management

of non-discrimination. This training was designed in conjunction with IMS and

presented by external specialists: employment law experts, career management

and diversity managers and an external consultant.

As early as 2006, the Group held an international career management seminar

under the theme of “Managing Difference”. One hundred and eighty HR managers

attended presentations on the Group’s diversity policy, and HR managers from

countries with a long history of diversity and non-discrimination initiatives, notably

the UK, the US, Hong Kong and Singapore, spoke about their experiences.

BNP Paribas Annual Report 2007 /////// Human Resources development

96_97


Entity Examples of non-discrimination training and awareness-raising sessions

Territory or

Subsidiary

BNP Paribas

For the past four years, annual training on non-discrimination and preventing harassment.

Australia

Includes an information and awareness-raising session for all employees, and a more

in-depth version for managers with advice on handling complaints and problems.

BNP Paribas

Since 2004, introductory course on managing diversity provided to managers. 2006 project

Canada

on the issue of disability: information and training sessions addressing feelings of uneasiness

with difference, with respect to interviews, customer service and the workplace.

BNP Paribas

Sessions on non-discrimination and equal opportunity legislation: annual training for the HR

Hong Kong

team organised by the Equal Opportunity Bureau, a government body, at the company’s

request.

BNP Paribas

2005: mandatory Inclusiveness in the Workplace training, to raise awareness of difference

New York

and learn to respect it.

BNP Paribas

Diversity training for managers: more than 200 trained. New Workplace Behaviour training:

United Kingdom two-hour role-play sessions run by actors, given to managers divided into groups of 20.

This training is due to be expanded to accommodate 200 people.

Bank of the West Diversity Awareness Programme: valuing diversity, understanding the difference between

diversity and non-discrimination, and being aware of stereotypes and cultural differences.

Training only for managers but due to be extended to all employees.

Cetelem The 2005 recruitment campaign centred on diversity, its slogan being “Diversity is a matter

of personality.” The HR newsletter Info RH provides regular updates on the issue. The

Diversity Charter, signed by Cetelem’s Chairman, is posted on the intranet. An annual

brochure published by the HR Department, Regards sur le monde Cetelem (a look at

Cetelem’s world), includes several pages on diversity. Cetelem’s project group Agir pour la

diversité (acting for diversity) presents the legal framework, relevant concepts, and sensitive

situations. Awareness is raised through games and quizzes, and with the presence of

an illustrator. During the sessions, the managers draft Cetelem’s diversity action plans.

BPLG Signature of an agreement on gender equality with employee representatives. This agreement

was circulated to all employees, accompanied by a letter from the Chief Executive

Officer.

BNP Paribas, Singapore


Participating in forums and committing to partnerships

BNP Paribas takes part in various forums and working groups on recruitment

and diversity. These include IMS, Africagora, AFIJ, the Zéro Discrimination

initiative in Lyons, and the Nos quartiers ont du talent project with the French

employers’ organisation MEDEF. The Group frequently attends recruitment

fairs in underprivileged areas.

Partnerships have been set up, particularly in poor suburbs, to help young

people enter the corporate world. They are described in the section entitled

A partner in society.

½ Tools and tangible results for diversity

Combating discrimination

Tools

An appeals commission

Any employees who feel they have experienced discrimination in the form

of a lack of promotion or pay rise can bring a complaint before the appeals

commission, which was set up following an agreement with the fi ve trade

unions and is comprised of representatives from these unions and from the

Group HR function.

An ethics alert mechanism

An ethics alert mechanism also enables all employees to report any noncompliance

risks they may come up against and, in particular, any practices

they may fi nd discriminatory.

Anti-discriminatory recruitment tools

Recruitment procedures have been put in place to prevent discrimination

and boost equal opportunity.

A statistical assessment of discrimination in recruitment and career development

was carried out by the research group Observatoire des discriminations.

A central team processes more than 90% of the applications received in

France, helping to ensure an objective recruitment process. The publication

of information on vacancies and work placement opportunities on the

Group’s website helps to ensure transparency.

Based on a comprehensive review of recruitment methods, systems for

assessing personality and behaviour at work were established to make interviews

with recruitment managers more objective. A tool is used to sort curricula

vitae based on the requirements of fi ve standard positions that account

for a large proportion of branches’ recruitment. This automatic sorting helps

recruitment managers by pre-selecting the most suitable candidates for

each post. Candidates’ nationalities no longer appear on application forms

fi lled in on the Group’s website. Cetelem now asks applicants not to put a

photo on their curriculum vitae, with the objective of assessing candidates

based on their skills and level of interest alone.

A new diagnostic tool was rolled out in 2007 to assess the workplace

behaviour of applicants.

BNP Paribas Annual Report 2007 /////// Human Resources development

Grand Palais, Paris

Collection Grand Palais /

Jérôme Prince

“6 billion Others”

In 2006, BNP Paribas

decided to sponsor a project

by renowned photographer

Yann Arthus-Bertrand,

which involved conducting

thousands of interviews

with people throughout

the world, to try to discover

“otherness” and produce

a portrait of humanity

at the beginning of the

21st century, a portrait that

highlights the individuality

and universality of each

person. In 2007, this project

has been exhibited at

BNP Paribas offi ces in

London and in Montreuil.

In 2009, “6 billion Others”

will be presented at a

major exhibition in Paris,

at Grand Palais, at which

the interviews will be

screened, and then will be

presented around the world.

The Group’s support for

this project was born of a

conviction that the diversity

of the human race is a

source of richness.

98_99


Results

Implementing an action plan to combat the risk of discrimination

Discrimination, either at the recruitment stage or at any other time in an

employee’s career, has been identifi ed as one of thirty major operational risks

faced by the Group worldwide. A risk analysis was carried out to assess the

potential causes of discrimination, defi ne prevention controls, weigh up possible

consequences (fi nancial, legal or in terms of reputation) and prepare an

action plan. A report is presented to the Executive Committee three times a

year regarding this action plan.

The Group’s model for assessing operational risk, which includes the risk of

discrimination, was validated by regulatory authorities in 2007.

Results in terms of equality in promotions

Special consideration is given to ensuring a balance in the proportion

of male and female candidates going forward for promotion. 40.3% of

BNP Paribas executives are female, meaning that the Group has already

met the target laid down by the French Banking Association for 2010. At

1 January 2007, women accounted for 28.5% of employees promoted to

senior management level.

Gender equality

Tools

Implementing a women’s working group

At the end of 2004, the Group HR Department brought together about ten

female senior executives from across the spectrum of the Group’s businesses

within the “Mix City” initiative (a pun on the French mixité, meaning gender

balance). The group is active in five main areas: services to facilitate day-to-day

life, management of maternity leave, working hours, mentoring and coaching,

and creating a women’s network. This group presented a series of suggestions

to the HR function on how best to facilitate the inclusion of women in senior

management positions.

Evaluation surveys

Surveys were used to assess ways to improve gender equality. In 2006,

BNP Paribas took part in the latest survey by the French Banking Association:

“Carrières comparées hommes-femmes dans la banque” (a comparative

gender analysis of carreers in banking sector), analysing the discrepancies

found in the careers of men and women over a 15-year period.

BNP Paribas, New York


Results

Corporate concierge services

Measures taken for maternity leave

After an initial agreement signed in 2004, BNP Paribas and the trade unions

signed a subsequent agreement on gender equality in the workplace in July

2007. This agreement is based on, reinforces and supplements the provisions

of the fi rst agreement. In particular, it ensures equal treatment of men

and women in terms of recruitment, salary and promotion, and includes

measures for maternity leave. Employees going on maternity leave have an

interview with their direct manager prior to their departure and again at least

two months before their return to defi ne the conditions under which they will

resume their post. The age limit that had been set for detecting high-potential

executives was replaced by a criterion of work experience to avoid penalising

women who have gaps in their career due to maternity leave.

Group subsidiaries BPLG, Cetelem, BNP PAM and BNP Paribas Assurance

have signed similar agreements. In 2006, another agreement was entered

into with four BNP Paribas SA trade unions regarding the implementation of

the French law of 23 March 2006 on equal pay during maternity, adoption

and post-maternity leave. This agreement lays down the rules for determining

minimum fi xed and variable salary increases. Since the agreement was

signed, it has enabled 743 women returning from maternity leave to have

their situation reassessed.

Integrating disabled persons

Tools

A review of the situation

The working conditions of BNP Paribas SA’s handicapped employees were

audited by TH Conseil, a human resources consultancy specialised in the

recruitment of disabled persons. Following the audit, Project Handicap was

put in place with a view to moving beyond an approach based on solidarity

to reach for a true commitment in terms of the Group’s corporate social responsibility.

Group subsidiaries Arval, Cortal Consors, Klépierre, BNP Paribas

Securities Services and Cetelem also established a Handicap diagnostic

review in 2006 and 2007. A special project was launched in 2007 to improve

the actions already in place to help disabled persons remain employed.

Results

Project Handicap

In order to improve the coordination of actions in place and facilitate the

inclusion of handicapped persons, BNP Paribas created a dedicated

team, Project Handicap, which is gradually establishing local contacts and

a recruitment and assistance programme. These initiatives are promoted

through internal communications aimed at the recruitment teams within

the main businesses, functions and regional departments of the banking

network. An action plan, which is set out in the one-year agreement signed

in May 2007 with Agefi ph, focuses on four main areas:

- raising awareness and offering training to the main players in the recruitment

process;

- hiring a signifi cant number of disabled workers on fi xed-term contracts,

permanent contracts and work placements, with emphasis on skills rather

than degrees;

BNP Paribas Annual Report 2007 /////// Human Resources development

Corporate concierge

services

Acting on the

recommendation of one of

the Mix City working groups,

BNP Paribas Assurance

started offering corporate

concierge services at its

Rueil-Malmaison site in

spring 2007. A number of

services are available to

employees, such as dry

cleaning, alterations, shoe

repair, car detailing and

access to a vending machine

that sells public transport

passes, stamps and parking

vouchers. The concierge on

duty ensures that the work is

completed satisfactorily and

is on call to answer any

questions about where to go

for other services – how

to fi nd an optician offering

same day lens repair, a

restaurant that costs less

than EUR 20 for a quick

lunch, or the nearest fl ower

shop open on Mondays.

As the goal is to help

to improve the work/life

balance of employees,

the services offered will be

expanded over time based

on employee needs.

100_101


ATM for the visually impaired, Duroc branch, Paris (France)

- formalising and intensifying actions by social services and occupational

health services to help employees dealing with disability (their own or a

family member’s) to remain in the workforce;

- stepping up the actions already in place to keep disabled workers in the

workforce. BNP Paribas SA has approximately 1,000 disabled workers in

mainland France.

Some 160 people – recruitment managers, Project Handicap contacts and

managers from the network’s regional departments – as well as employee

representatives, have taken part in special training sessions that focus on

disability.

In November 2007, during the French Handicap Week, BNP Paribas hosted

an open day in its Paris offi ces for disabled persons. The goals were to promote

awareness of jobs available in the banking sector, to allow applicants

to apply for jobs, and to meet applicants.


BNP Paribas is developing the outsourcing of certain work to sheltered workshops.

Since 1981, it has been working with the Institut des Cent Arpents,

which was set up by Mutuelle BNP Paribas in the suburbs of Orléans. The

facility, which is home to the Jean Pinault centre for assistance through work,

has recently increased its capacity and now provides work to 107 disabled

workers, compared with 80 previously. Eleven people with serious handicaps

also live in its special accommodation centre.

BNP Paribas is seeking to signifi cantly increase the number of handicapped

employees by broadening the pool of candidates. It also wishes to improve

support for employees confronted with a handicap either directly or in their

family. Whenever necessary, the Bank adapts workstations and the working

environment, and liaises with social services, the occupational health

department and the Group’s health insurance plan to improve personal living

conditions and help disabled employees with the purchase of expensive equipment.

A special project group was set up in 2007 to establish concrete initiatives

and step up the efforts to keep disabled workers in the workforce.

BNP Paribas SA continued its Accueil et Service (reception and service)

initiative aimed at improving access to its offi ces for customers and staff.

A full audit is currently being carried out on the compliance of the Group’s

head offi ce buildings in the Paris area. This initiative has been presented to

BNP Paribas SA’s employee representatives and will fi rst be rolled out to all

French subsidiaries, then extended to a certain number of other territories.

The Group has also improved access to its website for sight-impaired people

and expanded the range of software available to employees to include voice

synthesis software. In-depth studies are being carried out on ways to make it

easier to communicate with hearing-impaired clients and staff. Work is continuing

to bring head offi ce buildings into compliance with the access plan,

with particular attention being paid to the diffi culties encountered by disabled

employees.

In 2007, BNP Paribas, along with French training centre for the banking

profession (CFPB) and seven other banks, founded the association

HandiFormaBanques, which is currently chaired by BNP Paribas. This association

works to train and recruit people with disabilities for certain strategic

posts: banking call centre agents, receptionists and customer service representatives.

The association set up a structure and implemented resources

dedicated to integrating people, to make it easier to fi nd applicants and communicate

with them. It also establishes ties with other associations that focus

on employment for disabled persons.

BNP Paribas Annual Report 2007 /////// Human Resources development

102_103


BMCI, Casablanca


esponsibility

The full report on BNP Paribas’ social and

environmental responsibility is available from

the Sustainable Development section of the

www.bnpparibas.com website.

The Registration Document as well as this

Annual Report have been printed on PEFC

(Pan European Forest Certifi cation) certifi ed

paper, containing only fi bres obtained from

sustainably managed forests.

C rporate

social

104_105


The Group’s approach to

sustainable development

Responsibility based on core values

and guiding principles

BNP Paribas does not take its approach to sustainable development lightly.

The Group’s economic, corporate and environmental responsibilities are an

integral part of its business ethic and are rooted in its founding values of responsiveness,

creativity, commitment and ambition, which combine individual

actions in a cohesive group-wide approach.

Four

unifying values

Responsiveness

Creativity

Commitment

Ambition

Guiding principles

Operating

procedures

per division/

business line

❚ Management principles

❚ Ethical rules

❚ HR management rules

❚ Rules governing relations with clients and suppliers

❚ Ten main lines of approach to environmental responsibility

A strong commitment

to sustainable development

BNP Paribas bases its sustainable development efforts on targeted, coherent

public commitments. In 2007, it actively pursued its participation in numerous

initiatives, some of which are specifi c to the banking sector and others which are

more wide-ranging. This allowed the Group to promote sustainable development

in a range of areas and at different levels.

Global initiatives

BNP Paribas has been a member of the United Nations’ Global Compact

since 2003. The Compact’s ten principles are embedded within the Group’s

policies and inform all of its operating principles. As in previous years, in 2007

the Group published its Communication on Progress (COP).

BNP Paribas contributes to the work of the Observatoire de la Responsabilité

Sociétale des Entreprises (ORSE), the French study centre for corporate responsibility,

and Entreprises pour l’Environnement (EpE), a coalition of forty

French companies united by a commitment to the environment and sustainable

development. BNP Paribas has also undertaken to run the meetings of

the sustainable development club within ANVIE, the French association for

the promotion of interdisciplinary research in humanities and social sciences

in the business world.

The world’s leading companies are paying increasing attention to their

approach to human rights. Against such a backdrop, BNP Paribas has joined

eight leading French and francophone groups to share best practices with

a view to better incorporating respect for human rights into their business

policies and promoting human rights issues. Entreprises pour les Droits de

l’Homme (EDH – Companies for human rights) draws its inspiration from the

FRB

BNL bc

IRS

AMS

CIB


Day-to-day

behaviour

Our sustainable

development

responsibilities


Business Leaders Initiative on Human Rights programme, set up in 2003 to

help lead and develop the corporate response to human rights. EDH was

created to enhance contributions from the French-speaking world.

Finance sector initiatives

Alongside the Institutional Investors Group on Climate Change (IIGCC) and

the Carbon Disclosure Project, BNP Paribas Asset Management (BNP PAM)

strives to encourage companies to factor climate change issues into their

investment decisions. BNP PAM is also one of the founding members of the

Enhanced Analytics Initiative (EAI) through which it took the step of allocating

5% of its commission budgets to developing socially responsible investment

(SRI) analysis. BNP Paribas is involved in the British-based Business in the

Community (BITC) organisation, which brings together more than 700 companies

that promote responsible behaviour by companies within society.

The Group is also a member of the French forum for socially responsible

investment (FIR), which in 2007 awarded a prize for fi nance and sustainable

development research in Europe for the third year running. By building

bridges between universities, stakeholders and the fi nancial world, this prize

seeks to broaden the scope of social investment research, enabling players

to be more innovative in their sustainable development practices. It helps

to enhance the value of French and European university research and to legitimise

socially responsible investment.

The Group’s commitment can be witnessed in its involvement in initiatives

that expand the reach of its main activities. At international level, BNP Paribas

Investment Partners signed the Principles for Responsible Investment (PRI),

launched under the auspices of UNEP Finance. These guidelines help companies

to better embed environmental, social and corporate governance

concerns into mainstream investment decision-making practices.

Extension

of geographic

scope

Worldwide

France


CHALLENGES

The public commitments of BNP Paribas

Finance sector

PRI UNEP-

Finance

EAI

Enhanced

Analytics

Initiative

BNP Paribas Annual Report 2007 /////// Corporate social responsibility

CDP

Carbon Disclosure Project

EDH

(Companies

for human rights)

Apprenticeship charter

Diversity charter

SIDA Entreprises

(Africa)

Global

CIAN sustainable

development charter


106_107


Combining CSR

and economic performance

A duty of management

BNP Paribas does not consider corporate social responsibility (CSR) as a simple

act of altruism, but rather as a duty of management helping to ensure that

the economic, social and environmental aspects of a company, its employees

and its corporate philosophy are working in harmony. The Group is particularly

focused on CSR, with each business assuming responsibility for any effects its

activities may have on its business partners and the environment.

The steps that need to be taken to counter the social and environmental impact

of these activities on stakeholders is systematically charted and a diagnostic

review is carried out incorporating the results of a self-assessment by the entity

concerned with the fi ndings of analyses performed by the principal SRI rating

agencies and the Group’s other stakeholders. The Group’s approach becomes

operational with the implementation of action plans at core business, business

line, territory and function level. Any new direction is validated by the Executive

Committee.

5. Implementation of

yearly action plans

4. Incorporation of

external evaluations

1. Yearly update of the main

challenges and of the related

diagnostic review

2. Systematic coverage

of all risk areas

3. Self-assessment

A cross-disciplinary function

The Group has over 40 business lines in over 85 countries around the world, all

of which have a role to play in the Group’s sustainable development approach.

The cross-disciplinary Group Sustainable Development (GSD) function coordinates

and runs the overall policy. As well as maintaining a direct link with

all line managers, GSD coordinates a network of over 150 experts from all

divisions, business lines, territories and functions.


Recognition from SRI rating agencies

SAM

2007 was the sixth consecutive year in which BNP Paribas

was included as a component in both Dow Jones indexes

for socially responsible investment: DJSI World and DJSI

Stoxx.

Each year, the companies listed on the SRI indices are

selected by means of a questionnaire. In 2007, the banking

sector’s questionnaire comprised 93 questions on

topics of economic, environmental and social concern.

Sustainable Asset Management Inc. (SAM) identifi es the

top companies in each sector. Out of 2,500 companies

rated, only 250 actually make it onto the DJSI World index,

and only 24 from the banking sector.

This year the Group came in signifi cantly higher than the

sector average in almost all sections of the study, with an

overall rating of 71/100, compared with an industry average

of 48/100. This rating has been improving constantly

since 2002, in particular with respect to economic and

environmental concerns.

BNP Paribas’ inclusion on SRI benchmarks is recognition

of the initiatives it has taken to perform its sustainable

development responsibilities.

Changes in overall score

2007

2005

2003

❚ Highest rating ❚ BNP Paribas rating ❚ Sector average

48

48

Vigeo

Each year BNP Paribas publishes details of the score

awarded to it by Vigeo, Europe’s leading corporate social

responsibility rating agency. This rating, which now also

includes the company’s emission rights, is available upon

request from BNP Paribas.

At the end of 2006, Vigeo purchased the Italian agency

Avanzi SRI Research, and became Vigeo – Avanzi SRI

Research. In 2007, this new agency prepared a report for

investors and asset managers on the European investment

funds that exist for individual customers.

This report confi rms the continued growth in the number of

European SRI funds (up 13% in one year). In the classifi cation

of company shares that were most heavily represented

in SRI funds, BNP Paribas moved from 8th to 5th position

over the 2006/2007 period.

48

BNP Paribas Annual Report 2007 /////// Corporate social responsibility

68

71

61

84

86

79

CFIE

Each year CIFE, an organisation providing information

on the sustainable development performance of French

companies, reviews how thoroughly the NRE Act has

been taken into account in the annual reports of French

listed companies. BNP Paribas’ annual report is ranked in

the top ten for the fourth time, and the Group is the only

bank to appear in the ranking.

BNP Paribas – a leader in extra fi nancial reporting

CIFE rated BNP Paribas’ 2006 sustainable development

report very highly, citing it as being “particularly well put

together”. This assessment was mainly due to improvements

to three sections of the report, and helps the Group

to confi rm its place as leading banking sector player in the

extra fi nancial reporting domain. The section on human

resources now contains more specifi c information, and

includes more countries. Signifi cant improvements have

been made to data on the use of renewable energy in

the environmental section, and, according to CFIE, “waste

collection monitoring is particularly well explained”. The

social section is still “very well dealt with”. CFIE points out,

however, that efforts are still required to produce an even

more detailed and precise report.

Capital Bridge evaluation

According to a recent study by Capital Bridge, a UK fi nancial

communications agency, BNP Paribas is the most attractive

French company among SRI fund managers. Capital

Bridge ranks BNP Paribas 1st among French companies

and 3rd in continental Europe for the share of its capital held

by SRI investors.

Among companies in continental Europe, BNP Paribas

share was the most purchased by SRI fund managers in

2007. Capital Bridge sees this renewed interest as a result

of recent European trade fairs for SRI investors, at which

BNP Paribas presented its sustainable development policy.

BNP Paribas is present

on all the major

benchmark indices

for socially responsible

investment:

DJSI World, DJSI Stoxx,

ASPI Eurozone, FTSE4Good

Global and FTSE4Good 50.

Worldwide, BNP Paribas

is one of only a handful

of banks featured on

all indices.

108_109


A partner in society

A deep commitment to microfi nance

BNP Paribas has been promoting microfi nance since 1993. Recognised as

an effective weapon in the fight against poverty, microcredit is offered to people

looking to set up their own business but who are unable to access traditional

forms of fi nancing. Microcredit is only one aspect of microfi nance,

which also includes for example microinsurance, microsavings and migrant

workers’ transfers.

Microcredit: a commitment in favour of social integration

Since 1993, both BNP and Paribas, and now BNP Paribas, have been tireless

in their support of ADIE (Association pour le Droit à l’Initiative Économique),

France’s leading non-profi t association for microfi nance. Under the terms

of the partnership, BNP Paribas grants ADIE a credit line of EUR 5 million,

undertakes to cover part of the risk of non-collection, and helps to fi nance

ADIE’s operating expenses (for around EUR 350,000). BNP Paribas also

offers entrepreneurs who are members of ADIE the Esprit Libre Pro package

at no cost for six months. In 2007, 1,731 entrepreneurs, i.e. 18% more than

in 2006, received support from BNP Paribas through ADIE. The average loan

amount was EUR 2,800, granted over a period of nearly two years.

Through Projet Banlieues, launched in 2006, the BNP Paribas Foundation

has consolidated the initiatives it has been fi nancing through ADIE for the last

15 years or so. The additional funding, as described above, will enable ADIE

to open seven new centres in disadvantaged neighbourhoods by the end of

2008. A centre was opened in Marseilles in 2006, followed by two others in

2007, in Toulouse and Lyons. Overall, the project should help to create and

support approximately 800 additional small-scale businesses. In two years,

nearly 400 companies and some 480 jobs have been created with the help

of this project.

Within the context of its collaboration with ADIE and the agreement signed with

Caisse des dépôts and the association CRESUS (which helps over-indebted

individuals), the Cetelem Foundation grants microloans to members of society

who do not normally have access to banking services. The programme draws

on the assistance of CRESUS volunteers and is guaranteed in part by the

Fonds de cohésion sociale, a scheme set up in France to develop community

microcredit. Cetelem has added a solidarity option to its Happycard customer

loyalty scheme, allowing customers to make donations to ADIE. After only one

year, a total of EUR 20,000 has been donated in this way. Cetelem tops up the

total amount donated by individuals by 50%.

Microcredit in Guinea

Microcredit in India

BNP Paribas in support

of Microcredit Week

For three years,

BNP Paribas has sponsored

Microcredit Week, which

is organised by ADIE. The

aim of this initiative is to

introduce the concept of

microcredit to job seekers

and those on long-term

unemployment benefi t who

are looking to set up their

own business but are unable

to access traditional forms

of fi nancing, and to enable

potential entrepreneurs

to gain information and

discuss their project with

people who have already set

up their own business and

with ADIE’s organisers. In

2007, 90 forums were held

in public places throughout

France, as well as in local

business creation networks

and in associations that

provide social support and

help fi ght social exclusion.


Expanding microfi nance activities outside France

Building on its experience of microfi nance in France and

in a number of African countries since 1993, BNP Paribas

set up a groupwide Microfi nance business in 2006.

The medium-term aim of this initiative is to position the

Group as one of the world’s leading banks engaged in

microfinance, by supporting its development strategy in

emerging countries, particularly around the Mediterranean

basin.

The international microfi nance project is ahead of schedule

with its initial operating plan. A special team within

Asset Management Services works closely with some

100 employees throughout the Group from the Corporate

Investment Banking (CIB) and International Retail Services

(IRS) international networks.

The project focuses mainly on refi nancing, in local currency,

the microfi nance institutions in the areas where the

Bank operates. Within one year, BNP Paribas has partnered

22 microfi nance institutions in 11 countries, representing

EUR 76 million in total credit granted. The project has

been able to help more than 420,000 borrowers (78% of

whom are women), impacting the lives of two million people

when taking into account family members.

The countries involved in the project are Argentina, Brazil,

Egypt, Guinea Conakry, India, Madagascar, Mali, Mexico,

Morocco, Senegal and the Philippines. The agreement

signed in March 2007 with the French Development

Agency (AFD) to jointly support the microfi nance sector

was a major step forward for the project.

An original plan in Gabon

Banque Internationale pour

le Commerce et l’Industrie

du Gabon (BICIG) launched

an innovative product called

KIMI Crédit (kimi meaning

solidarity), designed in

accordance with the tontine

system, for low-income

households and small

businesses in the informal

sector. A tontine is a group

savings and mutual fi nancial

assistance programme for

a small group of borrowers

BNP Paribas Annual Report 2007 /////// Corporate social responsibility

This partnership focuses primarily on refi nancing microfi

nance institutions (MFIs) and fi nancing small- and

medium-sized enterprises based on guarantees issued

by AFD through its Ariz guarantee fund or its subsidiary

Proparco. This type of scheme is already in place in countries

such as Senegal, Guinea, Mali and Madagascar.

BNP Paribas and AFD have also developed partnerships

with respect to other corporate social responsibility and

environmental projects. In several countries, AFD or

Proparco make medium- and long-term fi nancial resources

available to the Group’s local entities, which are then

used by the entities to refi nance clients’ sustainable development

projects. In 2007, agreements of this type were

signed with TEB in Turkey and with UBCI in Tunisia. The

Bank also offers subsidised investment loans (PAI), which

are refi nanced by AFD, to small- and medium-sized enterprises

in the French overseas departments and territories.

A link-up with specialised rating agency Planet Rating, a

spin-off from the international NGO PlaNet Finance, has fostered

a better understanding of the business model specifi c

to microfi nance. Through this link-up a realistic risk policy

has been established, which takes account of a project’s

social impact, as well as of traditional fi nancial criteria.

Other areas of microfi nance are gaining ground, notably

micro-insurance. In December 2007, SBI Life, a joint venture

between BNP Paribas Assurance and State Bank of

India launched “Grameen Shakti” and “Grameen Super

Suraksha”, two micro-insurance life products designed

for self help groups (groups of people belonging to the

poorest populations in India, 90% created by women).

These products, which are distributed by the SBI branch

network and by NGOs and microfi nance institutions,

enable vulnerable populations to obtain life cover at very

advantageous prices (from less than EUR 1 per annum).

who are jointly liable. Each

member pays into the

tontine on a regular basis

and can, in turn, take out a

loan for up to three times the

amount saved.

BNP Paribas champions

microfi nance in Mali

Banque Internationale

pour le Commerce et

l’Industrie du Mali (BICIM),

a BNP Paribas subsidiary,

signed a EUR 230,000 loan

agreement in July 2007 with

the microfi nance institution

Miselini. Miselini, which

means “little needle” in

Bambara, was set up in 1999

and has since expanded

throughout underprivileged

neighbourhoods in Bamako

and the surrounding areas.

Miselini has over 16,000

active borrowers and

primarily targets women’s

groups, helping to support

their business and/or craft

activities.

110_111


Don McGrath (right), BancWest

Skills-based volunteer work

In addition to the microfi nance programme, two skills-based volunteer initiatives

were launched in 2007 in collaboration with BNP Paribas’ Association

of Retirees, which has over 21,000 members. These initiatives are based on

the idea that microfi nance needs skills as well as funding, and that a major

banking group is well placed to provide these skills on a volunteer basis either

through employees or retirees. The fi rst initiative involves the nationwide development

of the Jacadie project, launched in 2005 to help ADIE members plan

their business ventures. The second initiative, “Microfi nance Without Borders”,

offers microfi nance institutions in emerging countries banking skills in the

areas of risk management, management control and IT.

Community initiatives promoting

integration and solidarity

BNP Paribas helps to further economic and social development in the regions

in which it does business, by recruiting locally (see the section entitled “Human

Resources development”), partnering local initiatives and forging alliances with

key players from civil society.

Partnerships that nurture culture and education

½ Operation Hope in the United States

In 2000, the Group’s Californian subsidiary became a partner of the US organisation

Operation Hope Inc. (OHI). Operation Hope connects minority innercity

communities with mainstream fi nancial services, and promotes financial

literacy among populations living in under-served urban areas. Between 2000

and 2007, Bank of the West invested over USD 1 million in Operation Hope

and around USD 1.2 million in contributions in kind and additional commitments

not yet disbursed. Some 100 Bank of the West employees have already

been taken part in Operation Hope ventures, providing 485 hours of tutoring to

approximately 4,000 pupils.

A number of financial education initiatives are sponsored by Bank of the West,

including “Banking On Our Future” (BOOF), aimed at school goers between

9 and 18 years of age in Oakland, Portland and Denver, and Hope Centers

– dedicated shelters offering adult educational support and financial assistance,

particularly with regard to business ventures or home buying. The Hope

initiative also includes a “National Disaster Response” programme, whose

beneficiaries have included victims of hurricane Katrina.

½ TEB fi nances schooling for children in Turkey

TEB Sigorta, the insurance subsidiary of Türk Ekonomi Bankasi (TEB), recently

contributed to the “Baba Beni Okula Gönder” (Dad, send me to school) campaign,

which fi nances the schooling of 145 pupils for three years. TEB got involved

with this campaign in 2006, when an insurance product was launched to

guarantee the payment of children’s school tuition in the event of the death or

disability of their parents. The bank undertook to donate a portion of revenues

from the sale of this product to the initiative. As a result, tuition for 145 young girls

from some of the rural areas most affected by illiteracy has already been covered

for three years and TEB is planning to further increase its contributions.


½ In France

BNP Paribas allocated EUR 958,000 to institutions in

underprivileged inner-city areas as part of the apprenticeship

tax it pays. This amount is used to purchase, hire

and ensure the upkeep of teaching and professional equipment

and facilities and has helped some 100 institutions

in priority areas. This funding enhances the initiatives led

by BNP Paribas through its commitment to initiatives

focusing on tutoring, scholarships, mentoring, coaching

and discovery for pupils in underprivileged areas.

Coaching and mentoring in collaboration with AFEV.

The BNP Paribas Foundation has been providing support

to AFEV for approximately ten years. This voluntary organisation

enlists students to coach children from disadvantaged

neighbourhoods. With an additional EUR 150,000

in funding each year thanks to Projet Banlieues, AFEV

has been able to open three more centres in Evry, just

south of Paris, Rouen and Nice, and improve the structures

already in place in Lyons, Toulouse and Saint-Denis

(one of Paris’ northern suburbs). These initiatives all

generated positive results within a very short time. With

the new centres and the improvements made to existing

centres, AFEV is now able to coach some 900 pupils in

disadvantaged areas, with the help of 450 additional student

volunteers. Today, the BNP Paribas Foundation is

AFEV’s largest private sponsor in France, irrespective of

sector, and the second largest sponsor overall after the

French Ministry of Education.

Fête le mur

BNP Paribas Annual Report 2007 /////// Corporate social responsibility

Solidarity and outreach programmes

BNP Paribas’ commitment continued in 2007 through a

number of outreach and solidarity initiatives. Some of the

most important were:

Support for community projects by local associations.

In two years, the BNP Paribas Foundation, through

Projet Banlieues, has contributed almost EUR 350,000 to

83 associations that work to provide “integration through

knowledge” for children and teens in disadvantaged neighbourhoods.

The initiatives mainly focus on education,

professional integration, integration through sport and

culture, and lifelong learning initiatives. The main regions

to receive funding are Alpes-Maritimes, Eure, Haute-

Garonne, Rhône, Seine-Maritime, Seine-Saint-Denis and

Essonne.

Cannes et Banlieues festival by Luc Besson. French

fi lm director Luc Besson created the Cannes et Banlieues

(Cannes and the suburbs) festival in conjunction with the

60th anniversary of the renowned Cannes Film Festival.

This initiative, sponsored by BNP Paribas, gave residents

from ten Paris suburbs the opportunity to watch the fi lms

being shown in Cannes, on a giant outdoor screen set up

in their neighbourhood. Retail Banking in France helped

to advertise the free event with a poster campaign in the

branches in the areas concerned.

Fête le mur. Since 2000, BNP Paribas has sponsored the

Fête le mur tennis outreach association created and led

by Yannick Noah. As part of its involvement, the Group

invited 30 children from Fête le mur in the south-east of

France to attend the Monte Carlo Masters Series.

© ”Pingouin”

112_113


Philanthropy and

Sustainable Development

Conference by

BNP Paribas

Banque Privée

For the fi rst time in 2007,

BNP Paribas Banque Privée

invited 100 of its biggest

clients from around the

world to a conference in

Paris on Philanthropy and

Sustainable Development.

This event featured

top-notch speakers, each

with a unique perspective

on the issue: Professor

Amartya Sen, Nobel

Laureate in Economics,

Yann Arthus-Bertrand of

GoodPlanet, Alice Dautry

of the Pasteur Institute, and

Franck Riboud, Chairman

and CEO of Danone. The

BNP Paribas Philanthropy

Award was created during

this conference and will

be given annually to an

individual or family-owned

group that has demonstrated

an outstanding commitment

to philanthropy.

Excellence and success with the French Chess Federation. Since 2006,

BNP Paribas has been the offi cial sponsor of the French Chess Federation,

assisting in the promotion of chess among licensed players, the general public

and school goers. In 2007, Projet Banlieues launched an introduction to chess

initiative in Clichy-sous-Bois, enabling residents to take a basic course in the

discipline during the school holidays.

A BNP Paribas London team renovates a Bulgarian orphanage. In 2007,

66 employees from BNP Paribas London’s Loan Syndications and Trading

team spent a day renovating a Bulgarian orphanage for physically and mentally

handicapped children in the town of Mezdra. They painted walls, laid paving

stones, set up a playground, and improved access to the orphanage. The team

provided the orphanage with medicine, toys and building materials. This initiative

came in addition to the corporate social responsibility projects carried out

by the Sofi a offi ce.

Renewed commitment in New Orleans. After Hurricane Katrina hit Louisiana

in 2005, BNP Paribas’ employees showed that they wanted to be personally

involved in the reconstruction effort by setting up the BNP Paribas New Orleans

Aid Brigade. BNP Paribas Structured Finance and Corporate Coverage in the

United States recently organised an in-house event in support of the initiatives

of this brigade. In April 2007, 85 employees from the United States and France

helped to rebuild a number of playgrounds that had been destroyed. In March

2007, BNP Paribas also funded the New Orleans Business Continuity Program

which backs a number of projects to rebuild the city. The Group received

the “Corporate Social and Environmental Responsibility” award in the United

States in recognition of employees’ commitment to reconstruction projects in

New Orleans.

The Telethon in France and Italy. BNP Paribas has been the offi cial bank for

the French Telethon since its creation, handling cheques sent by donors and

delivering the tax receipts for donations made. A large number of employees

participate in the Telethon – devising and organising sports, musical and gastronomic

events, and community initiatives. In 2007, over 500 initiatives were

organised in France and French overseas departments and territories by

2,000 employees, in addition to 300 tennis tournaments for the Tennis Telethon.

In Italy, BNL also offers considerable support to this fundraising campaign,

bringing in almost half the amount raised. During the Telethon, hidden cameras

are set up in BNL branches to take candid footage of Italian actors, who play

the role of BNL advisors collecting donations. Many Italian employees take part

in this fundraiser.


BNP Paribas Foundation:

imaginative and in touch with the world

Operating under the auspices of the Fondation de France,

the BNP Paribas Foundation has been promoting dialogue

between the banking community and its social and

cultural environment for over twenty years. As a meeting

point for exchange and discovery, it gives new expression

to the Group’s core values of ambition, commitment,

creativity and responsiveness.

Through its programmes, the BNP Paribas Foundation

strives to preserve and promote cultural heritage and

support artistic expression. It also provides funding for

state-of-the-art medical research, as well as for innovative

projects in the areas of education, social insertion

and disability.

In addition to grants, the Foundation provides support for

its partners and seeks to cater to their individual objectives,

namely by developing programmes and providing

advice and on-the-spot assistance, together with access

to the BNP Paribas worldwide network of contacts.

The BNP Paribas Foundation is a member of Admical, the

fi rst business sponsorship association in France, and of

the centre for charitable foundations in France.

Cultural patronage

As a recognised benefactor of museums, the BNP Paribas

Foundation provides funding for the publication of art

books that familiarise the public with museum collections,

and awards grants for the restoration of masterpie-

Corporate and

Investment Banking

works alongside

the Foundation to aid

research

At the end of 2007,

Corporate and Investment

Banking made several

donations to charitable

organisations. In France,

it continued to back the

partnership already

in place between the

BNP Paribas Foundation

and the French Foundation

for Medical Research (FRM)

by providing funding to the

Biomedical Excellence

programme. Through this

cross-disciplinary initiative,

Corporate and Investment

Banking will enable young

post-doctoral researchers

from all different areas

to complete their training

in major international

laboratories, thus allowing

them to exchange their

knowledge, discuss their

techniques and create

invaluable contacts for

future projects.

BNP Paribas Annual Report 2007 /////// Corporate social responsibility

ces. Its initiatives have benefi ted a wide variety of French

and international institutions, helping to publish some 50

books on museums and enabling around 150 works of

art to be restored and placed on display to the public.

The BNP Paribas Foundation also supports the performing

arts by establishing close partnerships with modern

dance companies, circus troupes, writers, jazz musicians

and other performers working in disciplines that are often

overlooked by other sponsors. At the same time, it helps

to make rare or unperformed works more widely known

and contributes to cultural cooperation programmes.

It also makes use of its extensive links with festivals and

production companies to bring new talents to a wider

audience.

½ A partner in France and abroad

The Foundation supports international initiatives launched

in partnership with cultural institutions in France, provides

fi nancial backing for concerts, organises programmes

showcasing the international arts scene, and promotes

and coordinates patronage within foreign branches. Like

the BNP Paribas Group, the Foundation has its roots in

France but its eyes are resolutely turned towards the international

arena. It organises regular encounters between

its sponsorship benefi ciaries and the Group’s staff,

clients and shareholders. These exchanges enhance the

Foundation’s role as an instrument for mutual enrichment

and human progress.

114_115


Virgin Triptych by Macrino d’Alba. Detail: Joachim and Anne Meeting at the Golden Gate in Jerusalem.

½ Städel Museum: restoration of the Virgin Triptych of Macrino d’Alba

In 2007, the BNP Paribas Foundation made it possible to restore a piece from

the Quattrocento, the Virgin Triptych, kept at the Städel Museum in Frankfurt.

This altar piece was painted in 1495 by Macrino d’Alba (1470–1528), from

Alba in Piedmont, and is made up of three painted wooden panels representing

Madonna with Child, St Joachim and the Angel, and Joachim and

Anne Meeting at the Golden Gate. The triptych, which is displayed in a beautifully

decorated and restored frame, is now once again a centrepiece of

the Italian collection at the Städel Museum, one of the most important fi ne

arts museums in Germany. This restoration was conducted as part of the

BNP Paribas for the Arts programme, which has made it possible to restore

more than two hundred works in various museums. The project demonstrates

the Foundation’s commitment to expanding its initiatives in many of

the countries in which the Bank is present. Restoration projects are currently

underway or scheduled in Australia, Egypt, the Netherlands, Greece and

Singapore.

© Städel Museum, Frankfurt am Main/Artothek


½ Les Colporteurs

The history of the modern circus troupe Les Colporteurs is linked to the history

of its creator, Antoine Rigot. Ever since he fi rst stepped onto a steel cable

with his wife Agathe Olivier, this tightrope walker has never looked back. This

demanding, lyrical activity has become his lifeblood, source of strength, and

way of life, and his work has had a signifi cant impact on the history of contemporary

circus. In 2007, the BNP Paribas Foundation sponsored the troupe’s

new performance, Fil sous la neige, featuring three musicians and seven

tightrope walkers. The show was once again an enormous success, performances

were scheduled at more venues, and, thanks to the Foundation,

new artistic creations took shape. In addition to touring and producing,

Les Colporteurs are also working on setting up a centre that will offer opportunities

for training, research, production, as well as performances. This

centre is scheduled to open in 2008.

Medical research and volunteer activity

As part of its support for healthcare and research, the BNP Paribas Foundation

assists researchers and physicians working in both medical research and

applied clinical research. In this area, the Foundation works with pre-eminent

scientifi c institutions to select benefi ciaries. Funding generally takes the form

of multi-year grants which are awarded to new research projects.

As part of its volunteer efforts, the BNP Paribas Foundation has been involved

in a number of pilot projects aimed at promoting social cohesion and

combating all forms of exclusion. These include Projet Banlieues, launched

at the end of 2005, and the “Coup de pouce aux projets du personnel”

programme, which in four years has helped fund associations in which

employees are involved on a personal basis.

Two successful years for Projet Banlieues

At the beginning of 2006, with the support of its Foundation and the collaboration

of its retail banking network in France, BNP Paribas launched the ambitious

Projet Banlieues project. With a budget of EUR 3 million over three years,

this project is dedicated to creating jobs and cultivating social cohesion in

disadvantaged neighbourhoods, as well as to tutoring students in diffi culty.

Projet Banlieues focuses on three main areas: supporting economic

development and business creation through microcredit with ADIE (see

above “Microcredit: a commitment in favour of social integration”); tutoring in

disadvantaged areas in partnership with AFEV (see above “Partnerships that

nurture culture and education”); and supporting community projects by local

associations (see above “Solidarity and outreach programmes”).

BNP Paribas Annual Report 2007 /////// Corporate social responsibility

BNP Paribas Foundation:

Grand Mécène prize

from the French

Ministry of Culture and

Communication

In 2007, the BNP Paribas

Foundation was awarded

the Grand Mécène (literally:

“major sponsor”) prize

by the French Ministry of

Culture and Communication

for its longstanding

commitment to corporate

sponsorship. The award

was presented to Baudouin

Prot, and the BNP Paribas

Foundation was praised for

the impact of its far-ranging

patronage policy, which has

been in place since the early

1980s.

BNP Paribas Real Estate:

a patron of architecture

As the benchmark player in

corporate and residential

real estate services in

Europe, BNP Paribas Real

Estate has launched a

patronage programme

to support architecture.

To get the programme

underway, the entity

sponsored the fi rst major

exhibition organised by the

Cité de l’architecture et du

patrimoine at the Palais

de Chaillot in Paris, called

Avant après ou l’architecture

au fi l du temps (Before and

After: Architecture Through

Time).

116_117


Glossary

Accretion

ADR

(American Depositary Receipt)

AMS

Arbitrage

Attribution right

Avoir fiscal

B2B or BtoB

B2C or BtoC

B2E portal

Back office

BNL bc

Bond/Debenture

Capital

Capital increase

Cash flow

CECEI

CIB

Comité Consultatif

des Actionnaires

Reverse of dilution. Accretion is where a corporate action (share buyback or issue of shares

in a smaller proportion than the increase in income following a merger or public tender

offer, for example) leads to an increase in earnings per share.

Negotiable certifi cates representing one or several shares. Their face value is stated in dollars

and interest is also payable in dollars. ADRs allow American investors to buy shares in

foreign-based companies that are not quoted on an American Stock Exchange.

Asset Management and Services.

Activity that consists of attempting to profi t by price differences on the same or similar

fi nancial assets. For example, in the case of a takeover bid, where the predator offers a

price that exceeds the price at which the target’s shares are trading.

Right to receive bonus shares issued in connection with a capital increase paid up by

capitalising retained earnings. Attribution rights are quoted.

Dividend tax credit available to individual shareholders resident in France on the dividends

distributed by French companies. The purpose of the tax credit is to avoid double taxation

of distributed earnings, in the hands of the company and the shareholder. The avoir fi scal

granted to individual shareholders resident in France is equal to one-half of the net dividend.

It is deductible from personal income tax. If the avoir fi scal cannot be set off against

taxable income, it is refunded by the French Treasury.

Business to Business: sales of products or services by one company to another.

Business to Consumer: sales of products or services by a company to a consumer.

Intranet site for Group employees. The home page includes a browser, links to services

and a wealth of information concerning the various functions within the Group, practical

information for employees and career information.

Department responsible for all administrative processing.

BNL banca commerciale (formerly Banca Nazionale del Lavoro).

Debt security whereby the issuer undertakes to pay the lender a fi xed capital sum at a specifi

c future date, plus twice-yearly or annual interest payments. Interest payments — generally

at fi xed rates — may vary over the life of the bond. Debentures are unsecured bonds.

Amount of cash or assets contributed by shareholders, plus any profi ts, retained earnings

or premiums transferred to the capital account. The capital may be increased or reduced

during the life of the company.

A method of increasing a company’s shareholders’ equity. The capital may be increased

by issuing new shares for cash or in exchange for assets, such as shares in another company.

Alternatively, it may be increased by capitalising additional paid-in capital, retained

earnings or profi ts and either raising the par value of existing shares or issuing new shares

without consideration. Existing shareholders may have a pre-emptive right to subscribe

for the new shares or this right may be cancelled. A capital increase may be carried out to

give new investors an opportunity to become shareholders. All capital increases must be

authorised in advance by the shareholders, in Extraordinary General Meeting.

Cash generated by operations that can be used to fi nance investment without raising

equity or debt capital.

Comité des Établissements de Crédit et des Entreprises d’Investissement: Committee

headed by the Governor of the Banque de France responsible for monitoring the proper

operation of the French fi nancial and banking system.

Corporate and Investment Banking, one of the BNP Paribas Group’s core businesses.

Shareholder Consultation Committee. A group of individual shareholders selected to

advise the company on its communications targeted at individual shareholders. The BNP

Paribas Comité Consultatif des Actionnaires was set up in the fi rst half of 2000, at the time

of the merger.


Consolidated net income

Convertible bond

Corporate governance

Coupon

Custody fee

CVR (Contingent Value

Rights Certificate)

Derivatives

Dilution

Dividend

EONIA

EUREX

EURIBOR (European InterBank

Offered Rate)

BNP Paribas Annual Report 2007 /////// Glossary

Net income of the Group after deducting the portion of the profi ts of subsidiaries attributable

to minority shareholders.

Bond convertible into the issuer’s shares on terms set at the time of issue..

Series of principles and recommendations to be followed by the management of listed

companies.

The coupon represents the right of he security for a given year.

Fee received by a bank or broker to hold and service securities recorded in a securities

account. Custody fees are payable annually in advance. They are not refunded if the securities

are sold during the year, but no fees are payable on securities deposited during the

year until the beginning of the next year.

Financial instrument generally issued in connection with the acquisition of a listed company,

guaranteeing the value of the underlying security at a pre-determined date. The

CVR entitles the shareholder of the target to receive an amount equal to the positive

difference between the offer price and a «reference» price.

Contracts whose value is based on the performance of an underlying fi nancial asset,

index or other investment, used to hedge or profi t from future changes in the value of the

underlying.

Impact on the rights attached to a share of the issue of securities (in connection with a

capital increase, a merger, a stock-for-stock tender offer or the exercise of rights), assuming

that there is no change in the total income of the issuer.

Portion of net profi t that the Annual General Meeting decides to distribute to shareholders.

The amount of the dividend is recommended by the Board of Directors. It represents the

revenue on the share and the amount can vary from one year to the next depending on

the company’s results and policy.

Euro OverNight Index Average.

A derivatives market.

The most commonly used money-market rate in the eurozone.

Euroclear Formerly Sicovam. Clearing house for securities transactions.

Euronext SA

FCP (Fonds Commun

de Placement)

FRB

Free cash flow

Free float

Company that operates the Paris, Brussels and Amsterdam Stock Exchanges. Euronext

SA establishes market rules, decides to accept or reject listing applications and manages

all trading technologies.

Fund invested in stocks, bonds and/or money-market securities. An FCP is similar to a

SICAV, but is not a separate legal entity. FCPs are generally smaller than SICAVs and

are easier to manage. They are subject to less restrictive regulations and can be more

specialised.

French Retail Banking.

Cash available after fi nancing operations and investments, available to pay down debt.

The amount of capital which is not under the control of stable shareholders. In other words,

capital that can be freely bought and sold and is therefore available to investors, excluding

for example shares held by the State, or shares that are subject to shareholders’ pacts and

so on. On 1 December 2003, the stocks that make up the CAC 40 index became weighted

according to their free fl oats, as opposed to their market capitalisations. This change was

born out of a desire to be consistent with the major world market indexes which already

function in this manner, and to ensure greater comparability between industries and shares.

BNP Paribas has a free fl oat of 95% – one of the highest on the Paris stock market.

118_119


Gain/loss on securities

Goodwill

Hedge funds

IAS

IFRS

IFU (Imprimé Fiscal Unique)

Institutional investor

Investment club

IRFS

IRS

ISIN code

LBO

LIFFE

Liquidity

LME

M & A

Market capitalisation

Market-maker/

Market-making contracts

MONEP (Marché d’Options

Négociables de Paris)

Positive/negative difference between the sale price of a security and the purchase price.

Difference between the cost of shares and the Group’s equity in the fair value of the underlying

net assets.

Funds that take both long and short positions, use leverage and derivatives and invest in

many markets.

International Accounting Standards

International Financial Reporting Standards.

French tax return issued by a bank or broker, listing all the securities transactions carried

out on behalf of the taxpayer and all the coupon payments made to the tax payer.

Financial institution which, by defi nition or by virtue of its articles of association, is required

to hold a certain proportion of its assets in stocks and shares. Examples include insurance

companies and pension funds.

A variable- or split-capital company, which enables its members to jointly manage a

portfolio of marketable securities formed from an initial investment and/or regular capital

contributions. Clubs benefi t from a favourable regime in respect of capital gains tax. The

FNACI (National Federation of Investment Clubs), which is located at 39, rue Cambon,

75001 Paris, provides on request all the information required for the launching and smooth

running of these clubs.

International Retail Banking and Financial Services. Abbreviation replaced by IRS in 2008.

International Retail Services. Abbreviation that replaces IRFS.

The new identifi cation number for securities listed on the stock market. The ISIN code

replaces the well-known Sicovam code which had since become the Euroclear code. On

30 June 2004, Euronext Paris put an end to its existing system for identifying securities

and replaced it with a system that uses ISIN codes. Having already been adopted by a

number of European stock markets including Amsterdam, Brussels, Lisbon and Frankfurt,

the new system gives a unique identity to each share and therefore facilitates cross-border

transactions between investors, primarily by improving harmonisation within Euronext.

The ISIN code comprises 12 characters: 2 letters to indicate the issuing country (e.g.,

FR for France and US for the United States) and 10 fi gures. BNP Paribas’s ISIN code is

FR0000131104.

Leveraged Buy Out. Company acquisition fi nanced primarily by debt. In practice, a holding

company is set up to take on the debt used to fi nance the acquisition of the target. The

interest payments due by the holding company are covered by ordinary or exceptional dividends

received from the acquired target.

London International Financial Futures and Options Exchange.

Ratio between the volume of shares traded and the total number of shares in issue.

London Metal Exchange.

Mergers & Acquisitions.

Value attributed to a company by the stock market. Market capitalisation corresponds to

the share price multiplied by the number of shares outstanding.

Market-makers commit to maintaining fi rm bid and offer prices in a given security by standing

ready to buy round lots at publicly-quoted prices. Market-making contracts generally

concern mid-cap stocks and are intended to enhance the stocks’ liquidity. In France,

market-making contracts (contrats d’animation) are entered into between Euronext, the

issuer and a securities dealer.

Paris traded options market, including CAC 40 index options and equity options.


OAT (Obligation Assimilable

du Trésor)

OCEANE (Obligation Convertible

En Actions Nouvelles ou Existantes)

OPA (Offre Publique d’Achat)

OPE (Offre Publique d’Échange)

OPF (Offre à Prix Fixe)

OPR (Offre Publique de Retrait)

OPRA (Offre Publique

de Rachat d’Actions)

Option

OPV (Offre Publique de Vente)

ORA (Obligation

Remboursable en Actions)

P/E

Par value

PEA (Plan d’Épargne

en Actions)

PEE (Plan d’Épargne Entreprise)

Pre-emptive subscription rights

Preference shares

Price guarantee

Primary market

Prime brokerage

BNP Paribas Annual Report 2007 /////// Glossary

French government bonds.

Bond convertible for new shares or exchangeable for existing shares of the issuer.

French acronym for a public tender offer for cash.

French acronym for a public stock-for-stock tender offer.

French acronym for a public offering of securities at a set price.

French acronym for a compulsory buyout offer (fi nal stage in a squeeze-out).

French acronym for an offer to buy out the minority shareholders of a company that is

already largely controlled (fi rst stage in a squeeze-out).

Contract giving the buyer the right (but not the obligation), to purchase or sell a security at a

future date, at a price fi xed when the option is written (exercise price), in exchange for a premium

paid when the option is purchased. Options to purchase a security are known as calls and

options to sell a security are known as puts.

French acronym for a public offering of securities at a set price.

French acronym for equity notes, representing bonds redeemable for shares.

Price/Earnings ratio. Ratio between the share price and earnings per share. The P/E serves

to determine the multiple of earnings per share represented by the share price.

The par value of a share is the portion of capital represented by the share.

French name for personal equity plans. Savings products designed to promote private

share ownership, invested in shares of companies that have their headquarters in a

European Union country or in units in qualifying unit trusts. Revenues and capital gains

are exempt from personal income tax and capital gains tax provided that the savings are

left in the plan for at least fi ve years. Investments in PEAs are capped at EUR 120,000 per

individual.

French name for employee share ownership plans. Payments into the plan and reinvested

interest are exempt from personal income tax provided that they are left in the plan for at

least fi ve years (with early withdrawal allowed in certain specifi c cases). Surrender gains

are also exempt from personal income tax.

When a company issues shares for cash, each shareholder has a pre-emptive right to

subscribe for a number of new shares pro rata to the number of shares already held. The

right can be traded on the stock market. Companies can ask the General Meeting to cancel

shareholders’ pre-emptive subscription rights to facilitate certain operations or allow

the company to open up its capital to new investors.

Preference shares are shares that pay dividends at a specifi ed rate and have a preference

over ordinary shares in the payment of dividends and the liquidation of assets. They do

not carry voting rights.

When a company acquires control of a listed target, it is required to offer the target’s minority

shareholders the opportunity to sell their shares at the same price as that received by the sellers

of the controlling interest. The offer must remain open for at least fi fteen trading days.

Market where newly-issued securities are bought and sold.

Activity consisting of providing a wide range of services to hedge funds, including fi nancing,

securities settlement/delivery, custody, securities lending/borrowing, etc.

120_121


Public tender offer

Quorum

Quotation

Rating/rating agencies

Report

ROE

Secondary market

Settlement

Share

SICAV (Société d’Investissement à

Capital Variable)

SICOVAM (Société

Interprofessionnelle pour la

Compensation des Valeurs

Mobilières)

SPVT (Spécialiste en Pension des

Valeurs du Trésor)

SRD

(Service de Règlement Différé)

Subscription right

TBB (Taux de Base Bancaire)

Offer to buy shares of a company, usually at a premium above the shares’ market price,

for cash or securities or a combination of both. Where only a small proportion of the company’s

shares are traded on the market and the offer is followed by a compulsory buyout,

the process is known as a «squeeze-out».

General Meetings can take place only if there is a quorum. For Ordinary General Meetings,

on fi rst call there is a quorum if the shareholders present and represented hold at least

1/4 of the voting rights. There is no quorum requirement on second call. For Extraordinary

General Meetings, the quorum corresponds to 1/3 of the voting rights on fi rst call and 1/4

on second call. For Combined Meetings, the quorum requirements depend on whether

the resolutions are "ordinary" or "extraordinary".

The quotation determines the price of a security on the market at a given point in time.

Prices are generally quoted on a continuous basis throughout the day (from 9:00 a.m. to

5:30 p.m.), providing a real-time indication of the prices at which the security concerned

is changing hands. Continuous quotation allows market players to closely track market

trends. Quotations for securities with a low trading volume are made once a day.

A rating represents an assessment of the default risk on debt securities. The rating awarded to

an issuer has a direct impact on the issuer's borrowing costs. Changes in ratings also have a

signifi cant impact on the issuer's share price. The main rating agencies are Standard & Poor’s,

Moody’s and Fitch.

On the Euronext Paris market, transaction allowing an investor to carry forward a buy or

sell position from one deferred settlement date to the next.

Return on Equity. Ratio between consolidated net income and consolidated shareholders’

equity.

Market where securities are bought and sold subsequent to their issue.

Monthly date when transactions with deferred settlement (Service de Règlement Différé) are

unwound (or extended). This date corresponds to the fi fth trading day before the last trading

day in the month.

A share is a transferable security representing a portion of the capital of a limited company

or a partnership limited by shares. Ownership of shares is evidenced by an entry in the

issuer's share register (registered shares) or in a securities account kept in the holder's

name by a bank, stockbroker or other accredited intermediary (bearer shares). Shares

quoted on the stock exchange are also referred to as "equities".

Variable capital investment company that manages a portfolio of securities on behalf of its

shareholders. Shares may be purchased or redeemed at any time. The shares are not listed

but their value (corresponding to the company's net asset value per share) varies each day

based on changes in the value of the securities held in the portfolio.

Now renamed Euroclear France. Organisation responsible for clearing securities trades,

centralising all stock market transactions and facilitating the transfer of securities between

member institutions.

Primary dealer in French government bond repos.

French market where the main French and foreign equities are traded. Equities or bonds

purchased with deferred settlement are purchased on credit. The buyer is required to settle

the purchase price and the seller is required to deliver the securities on the next settlement

date, unless one or other of the parties asks for the transaction to be carried over to the next

settlement date (report).

Right to participate in a share issue for cash.

Interest base rate.


TMO (Taux Mensuel de Rendement

des Emprunts Obligataires)

TPI (Titre au Porteur Identifiable)

Trade Centre

Treasury shares

TSDI (Titre Subordonné à Durée

Indéterminée)

TSR

UCITS

Voting right

Warrant

Work flow

Yield

BNP Paribas Annual Report 2007 /////// Glossary

Interest rate corresponding to the monthly bond yield.

Procedure allowing issuers to obtain information about the identity of holders of bearer

shares from Euroclear.

Specialised sales force set up by BNP Paribas to partner its corporate customers'

international development. The Trade Centres offer importers and exporters a wide

range of customised services based on the "one-stop-shopping" principle.

Shares held by the issuer. Treasury shares are stripped of voting and dividend rights and are

not taken into account in the calculation of earnings per share.

French acronym for perpetual subordinated notes.

Total Shareholder Return: corresponding to return on the capital invested by shareholders,

including dividends and unrealised gains on the shares.

Undertaking for Collective Investment in Transferable Securities. Term covering unit

trusts and variable capital investment companies.

Right of a shareholder to vote in person or by proxy at General Meetings.

Certifi cate issued on a stand-alone basis or strippable from another security (share, bond)

giving the holder the right to acquire securities (share, bond). Warrants issued by fi nancial

institutions acting as market-maker give the holder the right to purchase (call warrant) or

sell (put warrant) various underlyings (interest rate, index, currency, equities) at a fi xed

exercise price during a fi xed exercise period. Although these warrants constitute options,

they cannot be sold short.

Process automation technology allowing the sequential transmission of digital documents

and fi les to the various people responsible for processing the data.

Indicator of the return on an investment, expressed in percent. For shares, the yield

corresponds to the ratio between the last dividend paid and the last share price.

122_123


Publication and Design

Brand, Communications and Quality - BNP Paribas

Creation and Production

Photo credits

Pascal Dolémieux – Grégoire Korganow – Gilles Leimdorfer – Jean-Erick Pasquier – Stéphanie Tétu


BNL, Roma TEB, Istanbul Bank of the West, Los Angeles BNP Paribas, Mumbai BNP Paribas, London

BNP Paribas, Singapore Cetelem, São Paulo BICIS, Dakar BNP Paribas, Montreal BNP Paribas, Madrid

BNP Paribas El Djazair, Algiers BNP Paribas, Marseille UkrSibbank, Kiev BNP Paribas, Lille BNP Paribas, Bahrain

BNP Paribas, Frankfurt BNP Paribas, Tokyo BMCI, Casablanca BNP Paribas, Geneva BNP Paribas, New York

HEAD OFFICE 16, boulevard des Italiens – 75009 Paris (France) Tel. : +33 1 40 14 45 46 RCS Paris 662 042 449

Société anonyme (Public Limited Company) with capital of EUR 1,811,390,890

SHAREHOLDERS RELATIONS Tel. : +33 1 42 98 21 61 / +33 1 40 14 63 58 www.bnpparibas.com

Ref. AR 08.02

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